Tamil Nadu announces Ethanol Blending Policy for 2023
The Tamil Nadu government presented ‘TN Ethanol Blending Policy 2023’ on Saturday, with the goal of increasing farmer income, revitalizing the sugar sector, and attracting investments worth Rs 5000 crore in molasses/grain-based Ethanol manufacturing capacity.
The aim of the policy term is “to achieve self-sufficiency and meet the expected ethanol blending requirement of 130 crore litres.”
The objective of the policy, unveiled at the Secretariat by Chief Minister M K Stalin, is to promote Tamil Nadu as a green economy and investment centre for alternative, cost-effective, green fuel.” Under the EBP programme, the policy seeks to support indigenous production of fuel-grade ethanol. “Given the fluctuations in crude oil prices, it is prudent for pioneer States like Tamil Nadu to increase biofuel production within the State using indigenous sources, which could partly insulate import price shocks, address pollution concerns, and enhance agricultural productivity.”
The Mission statement includes improving farmer income through price realization and expanded possibilities with ethanol blending, revitalizing the sugar sector in Tamil Nadu through greater usage of existing mills, and diversifying to dual feedstock. The policy covers new grain-based distilleries or expansions of existing grain-based distilleries, new molasses and sugar/sugar syrup-based distilleries or expansions of existing distilleries, whether attached to sugar mills or standalone distilleries. It is valid for 5 years from the date of notification. Increasing indigenous bioethanol production capability from agricultural resources to promote the resuscitation of the sugar sector and diversification to other food grains is one of the driving elements of EBP.
“Simplifying/streamlining regulatory obstacles through the establishment of an institutional structure to assist investors with speedier approvals and promote guaranteed procurement,” is another crucial component addressed. Ethanol is an agro-based substance derived mostly from molasses, a by-product of the sugar industry. The Ethanol Blended Petrol Plan (EBP Programme) of the Centre aims to accomplish the blending of Ethanol with motor spirit to reduce pollution, conserve foreign exchange, and increase value addition in the sugar business, allowing them to clear farmers’ cane price arrears.
