Cabinet gives nod to raise ethanol procurement prices

by | Sep 4, 2019 | Agriculture, Clean Energy & Transport, Sustainability

The move is expected to increase ethanol availability for blended petrol and thus help reduce import dependency, while also ensuring additional income for farmers.
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The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi has given its approval for the following, including fixing higher ethanol price derived from different raw materials under the Ethanol Blended Petrol (EBP) Programme for the forthcoming sugar season 2019–20. The ethanol supply year is from 1 December 2019 to 30 November 2020.

  1. The price of ethanol from C heavy molasses route be increased from Rs 43.46 per lit to Rs 43.75 per liter.
  2. The price of ethanol from B heavy molasses route be increased from Rs 52.43 per lit to Rs 54.27 per liter.
  3. The price of ethanol from sugarcane juice/sugar/sugar syrup route be fixed at Rs 59.48 per liter.

Additionally, GST and transportation charges will also be payable. OMCs have been advised to fix realistic transportation charges so that long distance transportation of ethanol is not disincentivized.

OMCs are advised to continue according priority of ethanol from 1) sugarcane juice/sugar/sugar syrup, 2) B heavy molasses 3) C heavy molasses and 4) Damaged Food grains/other sources, in that order.

All distilleries will be able to take benefit of the scheme and large number of them are expected to supply ethanol for the EBP programme. Remunerative price to ethanol suppliers will help in reduction of cane farmer’s arrears, in the process contributing to minimizing difficulty of sugarcane farmers.

Ethanol availability for EBP Programme is expected to increase significantly due to higher price being offered for procurement of ethanol from all the sugarcane based routes, subsuming “partial sugarcane juice route” and “100% sugarcane juice route” under “sugarcane juice route” and for the first time allowing sugar and sugar syrup for ethanol production. Increased ethanol blending in petrol has many benefits including reduction in import dependency, support to agricultural sector, more environment friendly fuel, lesser pollution, and additional income to farmers.

Background:
Government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 10%. This program has been extended to whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from 1 April 2019 to promote the use of alternative and environment friendly fuels. This intervention also seeks to reduce import dependence for energy requirements and give boost to agriculture sector.

Government has notified administered price of ethanol since 2014. For the first time during 2018, differential price of ethanol based on raw material utilized for ethanol production was announced by the government. These decisions have significantly improved the supply of ethanol thereby ethanol procurement by Public Sector OMCs has increased from 38 crore liter in ethanol supply year 2013–14 to over 200 crore liter in 2018–19.

Consistent surplus of sugar production is depressing sugar price. Consequently, sugarcane farmer’s dues have increased due to lower capability of sugar industry to pay the farmers. Government has taken many decisions for reduction of cane farmer’s dues.

With a view to limit sugar production in the country and to increase domestic production of ethanol, Government has taken multiple steps including, allowing diversion of B heavy molasses and sugarcane juice for ethanol production. As the ex-mill price of sugar and conversion cost have undergone changes, there is a need to revise the ex-mill price of ethanol derived from different sugarcane based raw materials. There is also a demand from the industry to include sugar and sugar syrup for ethanol production to help in solving the problem of inventory and liquidity with the sugar mills.

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Blending power with renewable energy is the way ahead: Pradhan

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The goal is to have 40% electricity generation capacity from non-fossil fuel-based energy resources by 2030: Pradhan (Pix source: PIB)

Minister of Petroleum and Natural Gas & Steel Dharmendra Pradhan has said that India’s growing energy sector is attractive for foreign investors. Speaking at Bloomberg NEF New Delhi Summit today, he said that it has repeatedly received funding from sovereign wealth funds, pension funds, long-term strategic investors from Western countries, Asian Countries and the Middle East, said a PIB release.

Pradhan said India remains a bright spot in the global economy. With strong domestic economy and supportive policy environment, the Government is committed towards achieving holistic, inclusive and sustainable economic development. India will become 3 trillion-dollar economy this year and aims to achieve a 5 trillion-dollar target in the near future. To achieve this target, India needs secure, affordable and sustainable energy to sustain the high growth and provide energy access to 1.3 billion people. Therefore, it is important for us to tap every source of energy. “We have taken several measures to overhaul the hydrocarbon sector to ensure energy security for the country while pursuing a green path to progress,” he said.

On the issue of energy landscape, the Minister said that it is passing through a big change – making way for clean energy technologies. “In a drive to provide energy access to all in a sustainable manner, our Government has taken a big responsibility by making global commitment to reduce emissions intensity of its GDP by 33–35% from 2005 levels. One of the main strategies India is planning to adopt towards achieving this goal is by having 40% electricity generation capacity from non-fossil fuel-based energy resources by 2030,” he added.

Appreciating the oil and gas companies for investing in developing renewable energy projects for self-consumption and for supplying to the grid, Pradhan said oil marketing companies are providing soft loans and subsidies to petrol pump dealers to install solar rooftops. He said, “This is the right time to think of sale options like blending electricity generated from gas power plants with renewable energy. This will further aid the process of emission reduction.”

Pradhan said the Government is committed towards clean energy, which extends beyond just electricity. The Pradhan Mantri Ujjwala Yojana has transformed the lives of millions of poor households by ensuring access to clean cooking fuel. “More than 75 million LPG connections have been provided under the Ujjwala Yojana so far, which has resulted in enhancing the LPG penetration in India to around 95% as against 56% in May 2014. The Pradhan Mantri Ujjwala Yojana has saved millions of women and children from the health hazards of smoky kitchens,” he said.

On the issue of city gas network, Pradhan said that only 20% of the population was covered under it in 2014 but with the success of the 10th CGD Bid Round, CGD network will expand to nearly 70% of our population. CGD would be available in 228 geographical areas comprising 402 districts spread over 27 States and Union Territories covering 53% of the country. The recently-concluded 9th and 10th CGD rounds will require investment of one lakh twenty thousand crore rupees.

The Minister said that many of our refineries are today close to large urban clusters, and as part of their focus as good corporate citizens, all have shifted to cleaner natural gas for their energy needs. In addition, the government has already implemented fuel efficiency norms for commercial heavy vehicles. “To tackle pollution issues, we are looking at gas-based transportation solutions. We are switching to BS-VI fuels from 1st April 2020. The National Capital Territory of Delhi has already switched to BS-VI fuels in April last year. We are promoting the use of CNG, bio-CNG and LNG in transportation sector. We are setting up bio-refineries and targeting newer sources of ethanol. The ethanol-blended program will enable OMCs to sell 10% blended petrol,” Pradhan said.

On the bio-diesel program, the Minister said “I am confident that we will soon be rolling out initiatives to enable achievement of 5% biodiesel blended diesel across country.” He said, “we will promote EVs, but it will be a holistic and integrated planning, where I have mentioned in my recent statements that all forms of transportation, which are clean and affordable, will be considered in our Energy Policy.”

The Minister said, “We are mindful of the difficulties being faced by investors in some instances where State Government is trying to renegotiate some of the executed contracts. Our Government has requested State Governments to reconsider their decision, as this will jeopardize future investment in not only the concerned state but also the country as a whole.

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grid connected solar

Grid connected solar (Representative image).

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SECI is a CPSU under the administrative control of the Ministry of New and Renewable Energy (MNRE), and has a major role to play in the sector’s development. The company is responsible for implementation of a number of schemes of MNRE, major ones being the Viability Gap Funding (VGF) schemes for large-scale grid-connected projects under JNNSM, solar park scheme, and grid-connected solar rooftop scheme.

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ev-charging

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The recently slashed GST rates on all electric vehicles (EVs) have come into effect from today. All EVs, small or big, personal or commercial, will be costing 7% less as compared to the day before. The rate cut was announced only five days ago at the 36th GST Council meeting chaired by Union Finance & Corporate Affairs Minister Nirmala Sitharaman and attended by Union Minister of State for Finance & Corporate Affairs Anurag Thakur besides Revenue Secretary Ajay Bhushan Pandey and other senior officials of the Ministry of Finance. In the meeting held on 27 July, the GST rates were cut to 5% from 12% earlier. see news)

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Speaking on the occasion, Pradhan said, Atal Innovation Mission has a key role to perform in order to achieve the target of five trillion dollar economy by 2025. He urged the NITI Aayog to open innovation Centres in all Gram Panchayats of the country to promote local innovation. Pradhan said innovation is part of every Indian’s daily affairs and there is need to support and promote them.He said that traditional and conventional knowledge available in the country needs to be supported and brought into the mainstream, through innovative mechanism.

Dharmendra Pradhan

The minister urged for innovative mechanism to harness and support traditional knowledge in the country.

Lauding the efforts of NITI Aayog in coming up with the idea of ACICs, the Minister said that they will make available cutting-edge innovation platforms across all corners of our country, with a focus on Aspirational Districts, Tier 2 and 3 cities and to North-east and J&K which will give a fillip to the skill development and employment opportunities in these areas. ACIC’s grassroot-level approach shall focus on a community oriented problem solving through small ideas with a big impact. ACICs will become a conduit for CSR funding by private and public sector firms in addition to direct funding through Atal Innovation Mission (AIM).

Pradhan said reducing the lab to land distance is one of the key objectives of AIM and Atal Community Innovation Centre will help in further strengthening our mission to strengthen the entrepreneurial ecosystem of India. ACICs will add a new chapter to India’s innovation story. It is a platform where the most innovative minds of the country can get access to solutions to modern entrepreneurial challenges.

The Minister also said that India produces approx. 600 MMT of non-fossilised biomass through farm waste, which if converted to energy can help usher prosperity in rural economy, promote a sustainable energy future & make our Annadatas, our ‘Urjadata’, in line with Hon. PM’s vision of Waste to Wealth creation. This is a CSR initiative in true sense.He expressed full support for the culture of innovation in the Country and assured that the public sector undertakings from Steel and Petroleum Sectors will provide support and hand-holding in this innovation mission. “I have asked Public Sector Undertakings (PSUs) to support this initiative, I also request NITI Aayog & AIM to innovate ACICs to help in finding innovative solutions to extract consumable energy from Biomass available in the country”, Pradhan said. The Minister added that Unique and incentivized solutions offered by ACICs will encourage students, researchers and other individuals/group of individuals to ideate and design novel solutions. ACICs will also connect innovative thinkers to our market and mainstream economy.

ACIC is a new initiative of Atal Innovation Mission to support community innovation drive in the country. The program is directed to encourage the spirit of innovation through solution driven design thinking to serve the society. It will focus on underserved and unserved regions of the country which at present lack a vibrant start-up and innovation ecosystem. ACIC will be established either in PPP mode or with support of PSUs and other agencies. The maximum grant-in-aid support form AIM will be up to 2.5 crores subject following compliance to ACIC guidelines and contributing matching form the host institutions and their funding partners.

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India holds energy talks with Niger, Togo, and Tonga

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Amina Moumouni, the Minister of Energy, Niger.

Marc Dederiwe Ably- Bidamon, Minister of Energy and Mines, Togo.

Union Minister of State for Power and New & Renewable Energy (IC) and Skill Development & Entrepreneurship RK Singh held bilateral meetings with Energy Ministers of Niger, Togo, and Tonga on 30 July. The bilateral talks were held with Amina Moumouni, the Minister of Energy, Niger; Marc Dederiwe Ably- Bidamon, Minister of Energy and Mines, Togo and Poasi Mataele Tei, Minister of Energy, Tonga in New Delhi, a PIB release said.

Poasi Mataele Tei, Minister of Energy, Tonga.

The meetings were held on the sidelines of first International Solar Alliance (ISA) Standing Committee Meeting in New Delhi. During the meetings, the Minister discussed various issues pertaining to ISA and areas of bilateral cooperation between India and these countries in Energy sector.

The ISA is an alliance of more than 122 countries headquartered in India. As the largest grouping of countries after the United Nations, ISA’s objective is to leverage solar energy in an efficient manner in order to reduce dependence on fossil fuels. As per the International Solar Alliance (ISA), it is conceived as a coalition of solar resource rich countries to address their special energy needs and provide a platform to collaborate on addressing the identified gaps through a common, agreed approach. The initiative was first proposed by India’s Prime Minister Narendra Modi in 2015.

 

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