Assam offers Rs 2 per litre incentive for grain-based ethanol

The Assam state cabinet has approved a production-linked incentive (PLI) to give boost to the production of grain-based ethanol in the state. The government is aiming to bolster farmers’ incomes and promote cleaner fuel alternatives. Assam, a major rice producer, will offer an incentive of Rs 2 per litre for a three-year period. The decision was taken in a cabinet meeting held in the state capital.

India began implementing 20% ethanol-blended fuel (E20) in April 2023, with widespread availability anticipated soon. The government targets achieving 20% ethanol blending by 2024-25 and 30% by 2029-30, having advanced the E20 target from 2030 to 2025. This initiative seeks to reduce oil import costs, enhance energy security, lower carbon emissions, and improve air quality.

However, blending ethanol with diesel remains at the experimental stage. Minister Hardeep Puri previously highlighted concerns about deposit formation in fuel tanks and potential safety risks, underscoring the need for caution in advancing diesel blending.

At the 2021 COP26 summit in Glasgow, Prime Minister Narendra Modi outlined India’s “Panchamrit” climate commitments. These include achieving 500 GW of non-fossil electricity capacity, generating 50% of energy from renewables, cutting emissions by 1 billion metric tonnes by 2030, reducing GDP emissions intensity by 45%, and reaching net-zero emissions by 2070.

Assam government has been promoting biofuels in the state to strengthen energy security & provide sustainable alternatives to the people. Recently ethanol maker Gulshan Polyols has announced that the company has commenced the commercial production of grain-based ethanol at its 250 KLPD capacity ethanol plant in Goalpara. Assam.

Recently, the Assam state cabinet approved an MoU to be signed with Reliance Industries under which, Reliance Bio Energy will collaborate with the Compressed Biogas (CBG) sector of Assam to explore avenues for producing green fuel and facilitating a shift away from fossil fuels.