Prime Minister Modi Advocates for Strategic Roadmap in Bioethanol Production and Blending
During the inauguration of a bioethanol plant in Assam, Prime Minister Narendra Modi emphasized the necessity for alternative fuels to decrease reliance on oil and gas. Industry experts, including Vedang Pittie from Harinagar Sugar Mills, called for a comprehensive national policy to facilitate higher ethanol blending beyond E20, advocating for a staggered approach. Pittie highlighted the sugar sector's potential to produce sustainable aviation fuel and the importance of adjusting ethanol pricing to ensure continuous production. He urged the government to support flex fuel vehicles and establish a clearer roadmap for ethanol blending to promote sustainability and investor confidence.
Theia Market Signal Identification - AI AssistedAt the inauguration of a bioethanol plant in Assam, Prime Minister Narendra Modi underscored the urgent need for alternative fuels as India seeks to reduce its dependence on oil and gas. This declaration resonates with industry leaders who assert that a national policy is essential to navigate the next stages of biofuel development.
With the successful implementation of E20 blending, experts like Vedang Pittie, an executive at Harinagar Sugar Mills, advocate for a clear, long-term roadmap that extends to E25 and E30 blends. Such a structured approach would not only secure a steady demand for ethanol but also instill confidence among investors.
Pittie emphasizes the pivotal role of the sugar sector in the sustainable aviation fuel (SAF) landscape, pointing to a Deloitte ISMA report that indicates a feasible production capacity of 125 to 150 crore liters of SAF by 2030, contingent upon the right infrastructure and policy frameworks. He notes that the advent of grain-based ethanol units is crucial for ensuring year-round feedstock availability, as maize offers three cropping seasons, significantly mitigating weather-related production risks.
To optimize ethanol production, Pittie suggests increasing the procurement price for ethanol derived from B-heavy molasses and sugarcane juice, which have remained stagnant despite rising domestic sugar prices. Such an adjustment would provide necessary incentives for sugar producers to divert more sugar towards ethanol production, particularly during anticipated surplus seasons like 2025-26.
Furthermore, he urges the government to find a balance between the promotion of electric vehicles (EVs) and flex fuel vehicles (FFVs). While countries like Brazil have embraced E30 blending, India’s FFV adoption has been hindered by prohibitive tax structures. Current tax rates—nearly 40%—make it difficult for FFVs to gain traction in the market, despite the availability of models suited for E20 and E30 blends.
In conclusion, Pittie posits that if India is to achieve its sustainability goals and aim for zero net emissions, prioritizing sugarcane-based ethanol is vital. He calls for rationalized policies for FFVs and a clearly defined roadmap for ethanol blending, asserting that this will foster a consistent supply chain, bolster investor trust, and ensure long-term energy security.
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