Mandatory ethanol blending in fuel to go up yo 10% by next year

Mandatory blending of ethanol in the petroleum fuel will be increased to 10 per cent by the next one year from the present level of five per cent in most of the States.

This was disclosed by Mr. S Sundareshan, Additional Secretary, Ministry of Petroleum and Natural Gas, Government of India, while addressing a Seminar on “Technology Trends for Fuel Efficiency & Emission Control in Transport Sector”, organized by PHD Chamber in association with PCRA and SIAM today in Delhi. He said that the ethanol blending with fuel will greatly reduce the consumption of petrol and lead to oil conservation. He also hinted at the major initiative that the Government would take for promoting bio-fuel. PCRA, he said, would play an active role in the promotional campaign.

Mr Sundareshan said that his Ministry would also launch a sensitization campaign for fuel efficiency and petroleum conservation using all available media such as print, electronic etc. to convey the message of fuel efficiency and conservation, PCRA would also sponsor special events.

Mentioning about the huge burden cast on the exchequer on account of the higher petroleum prices, Mr Sundaresehan said that the petroleum prices at US$ 90 per barrel would lead to deficit of Rs.104,000 crore on the public exchequer, which is mind boggling. He announced that the spot price of the fuel has come down by a notch at US$89 per barrel today. Even with a moderate price of US$ 70 per barrel, the burden on the exchequer would work out to Rs.52, 000 crore. "This huge outflow of foreign exchange can be moderated by enhancing the fuel efficiency and conservation that can have direct bearing on the fiscal deficit of the economy," he added.

Dr RC Panda, Secretary, Ministry of Heavy Industries and Public Enterprises, Government of India cautioned that India poised to become an automobile manufacturing hub of the world, should take precautions to ward off the green house emissions on account of the dieselization. The annual growth rate of automobiles in India is 16 per cent just below the China’s growth rate at 18 per cent. Equally significant is the fact that the Asian countries would consume 45 per cent of the fuel by 2025. "That would cast a heavy responsibility on us to look at some of the innovative strategies for fuel conservation and abating the emissions.

Calling for an integrated energy policy, Dr Panda said that energy efficient policies should be pursued at all levels. "We have to reinvent the pattern of mobility. Efficient Mass Transport systems should be developed which should encourage people to use public transport rather than using the personalized vehicles, which choke the roads and add to pollution," he added. He also called upon the Original Equipment Manufacturers (OEMs) to launch vehicles, which are Euro 4 compliant and could run on bio-fuel. It is also important for them to enhance their outlays on R&D to evolve technologies that can considerably reduce the emission of carbon dioxide. Fiscal incentives also should be considered for green vehicles and disincentives for those which do not conform to it.

Mr Ravi Capoor , Executive Director, PCRA said that India imports more than 72 per cent of its oil requirements, which was projected to be 93 per cent by 2030. The imports during the last year crossed Rs 200,000 crore. It is most essential to look at new technologies for the automobile industry which is more fuel efficient.

In his welcome address Mr Sanjay Bhatia, President, PHD Chamber emphasised that matching the best possible fuel efficiency standards by Indian automobile manufacturers would greatly help the consumers, the economy and in the long run definitely the industry. The quality of fuel and also the use of alternative fuels, both for energy security as well as emission reduction should also engage greater attention.

Mr. Bhatia said that according to BRIC Report, India has the potential to show the fastest growth in the next 30 years. All this means substantially higher demand for transport and the scarce energy. In the context of the transport sector, the Integrated Energy Policy 2006 announed by the Planning Commission has clearly pointed out that if the energy efficiency of all motorized transport vehicles is increased, our oil requirement could reduce substantially.