Economic Times. India sugar mills have committed to supplying one billion liters (264 million gallons US) of ethanol to oil marketing companies for blending with gasoline during the next sugar year, starting in October.
“In order to achieve the mandatory five per cent blending programme, oil marketing companies require 860 million litres of ethanol. But commitment of one billion litres has come from sugar the industry,” Apurba Chandra, Joint Secretary, Ministry of Petroleum and Natural Gas, told reporters on the sidelines of a conference here.
India has the capacity to produce three billion litres of ethanol a year, but it never reaches the full capacity since many of the installed capacity sat idle. In fact, the less-than-required ethanol supply has in the past hampered the five per cent blending programme implemented in 2006 in 20 states and four union territories. Government had in October 2008 made 10 per cent blending mandatory, but the tumbling of sugar cycle led to a large default.