About EBP

• Government has been implementing the Ethanol Blended Petrol (EBP) Programme wherein Oil Marketing Companies (OMCs) sell petrol blended with ethanol up to 10%. 
• This programme has been extended to the whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from 01st April, 2019 to promote the use of alternative and environment friendly fuels. 
• This intervention also seeks to reduce import dependence for energy requirements and give boost to agriculture sector.

Evolution

• Government has notified the administered price of ethanol since 2014. 
• For the first time during 2018, differential price of ethanol based on feed stock utilized for ethanol production was announced by the Government. 
• These decisions have significantly improved the supply of ethanol, consequently ethanol procurement by Public Sector OMCs has increased from 38 crore litre in Ethanol Supply Year 2013-14 (ESY – currently defined as ethanol supply period from 1st December of a year to 30th November of the following year) to contracts of over 452 crore litre in ongoing ESY 2021-22.  
• The target of achieving average 10% blending has been achieved in June, 2022, much ahead of the target date of November, 2022.
• Government has advanced the target of 20% ethanol blending in petrol from earlier 2030 to ESY 2025-26 and a “Roadmap for ethanol blending in India 2020-25” has been put in public domain. 

Why in News?

• The Cabinet Committee on Economic Affairs has approved higher ethanol price derived from different sugarcane based raw materials under the EBP Programme for the forthcoming sugar season 2022-23.
• All distilleries will be able to take benefit of the scheme and large number of them are expected to supply ethanol for the EBP programme. Remunerative price to ethanol suppliers will help in early payment to cane farmers, in the process contributing to minimize difficulty of sugarcane farmers.

Reference:

https://pib.gov.in/PressReleasePage.aspx?PRID=1873021