Context:
The Union Government has exempted E22, E25, E27 and E30 petrol blends from central excise duty to encourage higher ethanol blending and support India’s ethanol-based fuel transition.
Explanation:
- Ethanol is an alcohol-based biofuel primarily produced in India from sugarcane molasses, sugarcane juice, maize and other agricultural feedstocks.
- Ethanol blending refers to mixing ethanol with petrol; E20, E22, E25 and E30 denote 20%, 22%, 25% and 30% ethanol content respectively.
- The National Policy on Biofuels, 2018 (amended in 2022) provides the policy framework for ethanol production and blending.
- India achieved the target of 20% ethanol blending (E20) ahead of schedule and is exploring higher blending levels.
- Ethanol blending helps reduce crude oil imports, improve energy security and lower vehicular carbon emissions.
- Ethanol has a higher-octane rating than petrol, improving combustion efficiency and reducing certain pollutants.
- The Ethanol Blended Petrol (EBP) Programme is implemented by the Ministry of Petroleum and Natural Gas through Oil Marketing Companies (OMCs).
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