Tamil Nadu govt unveils ethanol-blending policy; targets to become self-sufficient

CHENNAI: In an attempt to promote Tamil Nadu as a green economy and investment hub for alternate cost-effective green fuel, chief minister M K Stalin on Saturday unveiled the state's ethanol blending policy.
Supporting the indigenous production of fuel grade ethanol under the EBP Programme, the policy aims at meeting the estimated annual ethanol blending requirement of 130 crore litres and to attract investments worth ₹5,000 crore in molasses and grain-based ethanol production.
Given the fluctuations in crude oil prices, it is prudent for pioneer states like Tamil Nadu to augment biofuel production within the state using indigenous sources which could partly insulate the import price shocks, address the pollution concerns and enhance agricultural output and its utilisation, said the policy.
Ethanol in the state is primarily produced from molasses-based (sugarcane) distilleries. Under the Ethanol Blending Policy, the state government wants to encourage diversification of feedstock to encourage such low water consuming and versatile crops as maize, sorghum and tapioca. It will also come up with appropriate guidelines to use damaged rice for ethanol production.
The major goals of the policy are improving farmer income by expanding opportunities in ethanol blending, reviving the sugar industry through improved use of existing mills and enhancing import substitution through indigenous sourcing and production of fuel grade ethanol and enable capacity creation and diversification of grain-based distilleries.
The government has clarified that EBP units do not need licences from the Commissionerate of Prohibition and Excise for ethanol production, adding that eligible units shall be exempt from obtaining clearances for possession and use of denatured spirit/methyl alcohol (methanol) in the manufacture of specified commodities. Eligible units shall be permitted to import/purchase eligible feedstock from other states and countries.