Sugar mills will soon be allowed to set up ethanol pumps: Nitin Gadkari
India plans to allow sugar mills to set up ethanol pumps, boosting biofuel accessibility. Nitin Gadkari aims to raise the sugar industry’s share in agricultural GDP from 1-1.5% to 3%. The government targets 20% ethanol blending by 2025-26. Initiatives include ethanol-based bitumen, CNG tractors, and hydrogen from biogas to drive green energy expansion.
Union Minister for Road Transport and Highways Nitin Gadkari on Thursday announced that sugar mills will soon be granted permission to set up ethanol pumps, facilitating easier access to the biofuel for consumers, as part of the government’s broader push to expand ethanol production and use in India.
Speaking at the Sugar-Ethanol & Bioenergy India Conference 2025, Gadkari outlined an ambitious plan to boost the sugar industry’s share in agricultural GDP from 1-1.5% to 3%. He stressed the need for innovation and diversification within the sector, citing ethanol as a key driver of economic and environmental progress.
The government has accelerated its ethanol blending targets, moving the 20% ethanol blending goal forward from 2030 to the ethanol supply year (ESY) 2025-26. This follows rapid progress, with Petroleum Minister Hardeep Singh Puri revealing that ethanol blending had already exceeded 19% by December 2024.
In a further push to support ethanol production, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a revision in ethanol procurement prices for public sector oil marketing companies (OMCs) for ESY 2024-25.
The administered ex-mill price of ethanol from C-heavy molasses has been increased by ₹1.39 to ₹57.97 per litre. The price hike is aimed at ensuring adequate supply to meet blending targets.
Expanding ethanol’s role
Gadkari underscored ethanol’s potential beyond fuel blending, highlighting plans to develop bitumen from ethanol for road construction. He also announced initiatives for CNG-powered tractors produced by sugar mills and reiterated the government’s commitment to flex-fuel vehicles.
Furthering the push for clean energy, the Minister spoke about hydrogen production from Bio-Compressed Biogas (CBG) and the development of bio aviation fuel, positioning the sugar industry as a key player in India’s green energy transition.
Separately, he also emphasised the need to modernise sugarcane farming to improve yields and profitability. He called for greater adoption of drones and nano fertilisers to enhance agricultural efficiency.
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Source : CNBC Tv18
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