Ethanol blending programme to get policy boost as crude oil prices soar

Under the new National Policy on Biofuels, the central government has expanded the scope of raw material for ethanol production by allowing use of various agro-waste products

As crude oil prices soar, the new biofuels policy might prove a timely impetus to boost ethanol production and blending, ease financial woes and attract private investment is a sector dominated so far by state-run oil marketing companies (OMCs).

It also comes when experimental projects planned for ethanol production are picking up pace and are at various stages of contracting and awarding. In 2016, the three state OMCs entered into 10 memoranda of understanding (MoU) for ethanol refinery projects and related initiatives. Some of these would have the three set up second generation (2G) ethanol units.

Pune-based Praj Industries is one company