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Cabinet will soon take a decision on mandatory blending of 10% ethanol with petroleum, Minister of Petroleum and Natural Gas Dharmendra Pradhan said here today.
"The government has kept the interests of farmers in mind. It has started the process and the Cabinet will soon take a decision on 10% mandatory ethanol blending (with petroleum)," Pradhan said at BJP non-conventional energy seminar here.
At present, it is compulsory to blend 5% ethanol with petroleum but the oil marketing companies have achieved only 1.37%.
The government is of the view that farmers can get good price for their sugarcane when there is value addition.
The sugarcane farmers feel that the move will yield better income for farmers, as ethanol is a by-product of sugarcane and will generate huge revenues if it is blended with petrol.
In November, 2012, the Cabinet Committee on Economic Affairs had decided that 5% mandatory ethanol blending with petrol should be implemented across the country and achieved by June, 2013.
Pradhan had earlier said that the state governments have been asked to simplify the procedure and expedite clearances to ease the availability of ethanol for blending.
In the year 2008, the Government announced its National Policy on biofuels, mandating a phase-wise implementation of the programme of ethanol blending with petrol in various states.
