Significance

♤ The policy is for using resources other than molasses for producing ethanol, since there is a shortage of molasses.

♤ Ministries of New a nd Renewable Energy and Science and Technology will find a way to produce second-generation ethanol from biomass, bamboo, rice straw, wheat straw, and cotton straw etc. to power vehicles.

♤ Based on promotion to second generation ethanol government is planning to take up ethanol blending in petrol to 22.5 percent and in diesel to 15 percent.

♤ Govt. is ready to purchase the entire quantity of 2nd generation ethanol produced by the industry.

♤ To augment supplies of ethanol to oil marketing companies (OMCs), the policy for procurement of ethanol has been modified to smoothen the entire ethanol supply chain and to provide remunerative price of ethanol.