Prime Minister Narendra Modi on Friday set a target to triple ethanol production in four years to help save Rs 12,000 crore in oil import bill by mixing the sugarcane extract in petrol as well as boost farm income.
Speaking at a function here to mark World Biofuel Day, he said about Rs 10,000 crore is being invested in setting up 12 bio-refineries in the country that will produce fuel from crop stubble and residue as well as urban waste.
“Biofuels can help reduce import dependency on crude oil. They can contribute to a cleaner environment, generate additional income for farmers and create rural jobs,” he said.
Modi said fuel generated from sugarcane and crop residue not only gives additional income to farmers but also helps the environment by the safe disposal of farm stubble.
The world’s third largest oil consumer is dependent on imports to meet 81 per cent of its needs and substituting some of the fuel with biofuels will help cut import dependence.
India started blending ethanol, produced as a by-product during the process of making sugar from sugarcane, in petrol during the first NDA regime in 2002. But the programme slowed almost to a grinding halt in the 10-year rule of Congress-led UPA.
Modi said the programme to mix ethanol in petrol was revived when the BJP-led NDA came to power again in 2014.
“As a result of the efforts of the Centre, ethanol blending in petrol increased from 38 crore litres in the ethanol supply year 2013-14, to an estimated 141 crore litres in the ethanol supply year 2017-18,” he said, adding this saved close to Rs 4,000 crore in oil import bill.
The target, he said, is to raise ethanol production for doping in petrol to 450 crore litres in four years that will save Rs 12,000 crore in import bill.
India spent nearly $88 billion (about Rs 5.9 lakh crore) on import of crude oil in 2017-18.