WHY IN THE NEWS?
India is pushing for cars to run on ethanol made from sugar. This move of the Indian government is increasing the risks of the higher cost of sweeteners worldwide.
Prime Minister Narendra Modi had advanced the target for blending 20% ethanol in gasoline to 2025 which is five years earlier than it was planned.
How this target will be achieved?
In order to meet the 2025 target, India is required to almost triple ethanol production by about 10 billion litres in a year. It will require $7 billion of investment.
Challenges that India will face
Advantages of ethanol blending
How government is supporting the process?
The government is offering financial support to sugar mills in order to set up or expand distilleries. For instance, Balrampur Chini Mills Ltd. will stop producing sugar at some of its mills and start processing cane juice to make ethanol.
India is following the Brazilian model that has promoted sugarcane-based ethanol for more than 40 years in order to increase energy security, ease its sugar glut and cut dependency on oil imports. Presently, Brazil has the largest fleet of flex-fuel cars running on any blend of ethanol and gasoline. India will also allow the production of ethanol-based flex engines.
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