TN Govt Unveils Ethanol Blending Policy 2023 to Increase Farmers’ Income

The aims for the policy term are to be self-sufficient and satisfy the expected Ethanol blending need of 130 crore litres. To attract investments worth Rs 5,000 crore in the state's molasses/grain-based ethanol production capacity. The EBP initiative attempts to stimulate indigenous production of fuel grade ethanol.

"Given the volatility of crude oil prices, it is prudent for pioneering states like Tamil Nadu to increase biofuel production within the state utilising indigenous sources, which might somewhat insulate import price shocks, alleviate pollution concerns, and increase agricultural output and utilisation." The objective of the policy, released in the Secretariat by Chief Minister M K Stalin, is to promote Tamil Nadu as a green economy and investment hub for alternative cost-effective green fuel.

The Mission statement includes improving farmer income through price realisation and expanded opportunities owing to ethanol blending, revitalising the sugar industry in Tamil Nadu through greater utilisation of existing mills, and diversification to dual feedstock.

The policy covers new grain-based distilleries or expansions of existing grain-based distilleries, new molasses and sugar/sugar syrup-based distilleries or expansions of existing distilleries, whether attached to sugar mills or standalone distilleries, and is valid for 5 years from the date of notification.

Increasing indigenous bioethanol production capability from agri-resources to assist sugar sector resuscitation and diversification into other food grains is one reason encouraging EBP.

Simplifying/streamlining regulatory obstacles through the establishment of institutional mechanisms to assist investors with faster clearances and promote assured procurement is another significant component outlined.

Ethanol is an agro-based substance derived mostly from molasses, a byproduct of the sugar industry. The Ethanol Blended Petrol Plan (EBP Programme) of the Centre aims to achieve the blending of Ethanol with motor spirit in order to reduce pollution, conserve foreign exchange, and boost value addition in the sugar business, allowing them to clear farmers' cane price arrears.