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Entire Biomass has utility value to derive byproducts like Sugar, Alcohol,
Power, Paper, Particle Board, Bioplastics.
•Indonesia’s University of Jember & Gadjha Mada inducing Sugars in Sugarcane leaves
to convert to ethanol.
•Vietnam’s University of Tech & Petro Chem Center & Japan’s Univ of Tokyo / Mitsui
Eng working on Ethanol from various feedstock's.
•Indian Government is yet to come up with Comprehensive Ethanol Policy Inspite of having
introduced blending in 2003.
•Excise duty waiver on Molasses, Sales Tax and interstate Sale to be Uniform.
•Ethanol Price awarded is not on par with MTBE pricing or even Crude.
•Ban Old vehicles and insist Auto manufacturers to go for multi flex vehicles.
•Policy Decisions interlinked with several ministries of which none have given impetus to
Ethanol Inspite of having not failed like Biodiesel to raise feedstock's.
•New revenue streams to better financial health of sector like Fortified sugar, Chemicals ,
Bioplastics be looked in to.
•Work on Carbon Footprint across entire value chain to reduce Pollutants and develop
possible CDM templates.
•Allow free trade of ethanol and develop requisite infrastructure as Ethanol is Hygroscopic
and also a Class A product with high Flash/Fire point.
•Most of Indian vehicles are above 10 years and they need to be replaced with Multiflex
vehicles which can use Petrol, Ethanol or a mix of both.
•Indian RTA is one among the most defunct and with low accountability .
•In India, the vehicle population is growing at rate of over 5% per annum and today the
vehicle population is approximately 40 million.
•The vehicle mix is also unique to India in that there is a very high proportion of two
wheelers (76%) which are major cause of pollution.
•A 6 billion liters ethanol production, could save an estimated around US$1 billion in
foreign exchange in diesel / petrol equivalent.
•This in turn would provide an additional income per year to the tune of Rs 6500 Crore at
an average price of Rs. 650 per tone.
•Petrol consumption in India during 2006-07 is 9,295,000 MT and only 0.64% of petrol is
replaced with Ethanol.
•At 10 per cent levels India would need at least 1,200 million litres of ethanol. Purchases
of sugarcane, the primary feedstock for ethanol production would be about Rs 12,600
crore at current prices.
Ethanol Demand, Supply for Blending in Gasoline
In terms of reduction of Co2, the nation can save nearly 5 to 6 million tones of carbon
equivalent per year including carbon substitution by bagasse, meaning additional
income from carbon trading estimated to be to the tune of $ 100 million.
Negatives of Ethanol
•Limitation to single feedstock of Molasses as Tapioca , Sweet Sorghum, Sweet Beet yet to
prove Commercial success.
•Indian Sugar Cycles and Global prices have not enabled Ethanol to be traded freely.
•Infrastructure for Domestic Storage, Transport, Handling and at Ports for export yet to be
developed alike Thailand as a Consortium.
•Opposition from Chemical and Potable alcohol manufacturers to compete for feedstock and
pricing.
•Political and Public support almost non existent Inspite of $135 crude pricing.