Sugar sector welcomes support for ethanol production

The government’s decision to impose an additional differential Excise Duty of ₹2 a litre on unblended fuel from October 1 will boost the Ethanol Blending Programme, according to the Indian Sugar Mills

The government’s decision to impose an additional differential Excise Duty of ₹2 a litre on unblended fuel from October 1 will boost the Ethanol Blending Programme, according to the Indian Sugar Mills’ Association (ISMA).

According to a notification of the Department of Revenue dated February 1, fuel to be categorised as blended (with ethanol/ methanol) has to conform to BIS specifications. The actual off-take from oil manufacturing companies (OMCs) will improve to achieve the blended fuel percentage, which is currently at about 10 % and avoid the additional Excise Duty, the Association said in a press release.

In a move to support the Ethanol Blending Programme, the government has kept a provision of ₹ 160 crore in the revised estimate for 2021-2022 and another ₹.300 crore in the budget estimate for 2022-23 for extending financial assistance to sugar mills for augmentation of ethanol production capacity. This will boost setting up of more ethanol distilleries in the country.