Blending ethanol with petrol has indeed resulted in significant foreign exchange savings for India. According to recent reports, the program saved over 24,300 crore rupees in foreign exchange during the 2022-23 supply year. This is a remarkable achievement, and it's worth understanding how it came about.
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Here are some key points to consider,
Aiming to reduce crude oil import costs and carbon emissions, the government introduced the 'E-20' blending system in April last year.
E-20 means that 20 percent ethanol is added to the gasoline. Currently selling more than 9,300 fuel units.
Ethanol is a renewable fuel produced from agricultural sources like sugarcane and corn. By blending it with petrol, India reduces its dependence on imported crude oil, which is a major drain on foreign exchange reserves.
The government has been actively promoting ethanol blending through various policies and incentives. The target is to achieve 20% ethanol blending by 2025 and 30% by 2030.
Blending ethanol also offers environmental benefits. It reduces greenhouse gas emissions compared to pure petrol, contributing to India's climate change goals.
The success of the ethanol blending program is a positive step towards India's energy security and environmental goals. It also benefits farmers by creating a new market for their produce.
Here are some additional details you might find interesting,
The program also led to expeditious payments of about 19,300 crore rupees to farmers, providing much-needed financial support to the agricultural sector.
It's estimated that the blending resulted in a net reduction of 108 lakh metric tonnes of carbon dioxide, contributing to cleaner air.
Overall, the ethanol blending program is a multi-faceted success story, showcasing the potential of renewable fuels in driving economic and environmental progress.