Cabinet likely to decide new price of ethanol this month
By IANSTuesday, January 5, 2010
KHARAGPUR - The union cabinet is likely to fix the new price of ethanol, required for blending with petrol to cut down on emissions, later this month.
“The proposal for paying Rs.26-27 per litre of ethanol will be discussed in the next cabinet meeting (later this month),” New and Renewable Energy Minister Farooq Abdullah told delegates at a function at the Indian Institute of Technology (IIT) here in a video conference.
According to him, the government will increase the blending level of ethanol with petrol from 5 percent to 10 percent by next year to cut down emission levels.
“The government last year made it compulsory to blend 5 percent of ethanol with petrol,” Abdullah said at the launch of the PK Sinha Centre for Bio-Energy at IIT Kharagpur, India’s first integrated bio-energy centre.
“If the price scheme becomes a success, the blending level will be increased to 10 percent.”
The minister said the use of bio-energy and renewable energy such as solar power, hydel power and hydro power would help the country come out of its energy crisis.
“India’s dependence on foreign oil and coke is a high energy security risk. A national bio-energy and renewable energy programme is of great importance as it could also be the answer to issues like land use, food versus energy, and global warming.”
Abdullah also said that bio-energy was poised to “play a critical role in building capacity, fuelling innovation, and accelerating sustainable development in India and the region.”
He reiterated that India has set a target of producing 20,000 MW of solar energy and 10,000 MW of wind energy by 2020. “We are determined to achieve it,” Abdullah added.
“Many micro hydel power generations projects are coming up in states like Arunachal Pradesh. The Clinton Foundation has agreed to build 3,000 MW of solar energy projects in Gujarat and Rajasthan.”
Abdullah, who was slated to launch the bio-energy centre at IIT, failed to make it to Kharagpur as his helicopter could not take off from Kolkata due to bad weather.
