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Higher procurement price for ethanol
Why is it in the news ?
- The Union Cabinet approved a higher procurement price for ethanol purchased by oil marketing companies (OMCs) for the ethanol blended petrol (EBP) programme.
More in the news
- The price of ethanol from C-heavy molasses will be increased from ₹43.46 per litre to ₹43.75 per litre.
- The price of ethanol from B-heavy molasses will be increased from ₹52.43 per litre to ₹54.27 per litre.
- The price of ethanol from sugarcane juice, sugar, and sugar syrup has been set at ₹59.48 per litre.
- The oil marketing companies will also pay the Goods and Services Tax and transportation tax associated with the ethanol supply.
- Ethanol availability for EBP programme is expected to increase significantly due to higher price being offered for procurement of ethanol.
- In January 2013, the Union government launched the Ethanol Blended Petrol (EBP) programme, which made it mandatory for oil companies to sell petrol blended with at least 5% of ethanol.
- Further, to achieve 10% of blending target by 2022 for the entire country excluding J&K, North Eastern States and island territories.
- The National Policy on Bio-fuels had set a target of 20% blending of bio-fuel by 2030.
Source
The Hindu.