EBP programme: Cabinet approves revised Ethanol procurement prices
New Delhi: The government at the Centre on Wednesday announced the revised Ethanol procurement prices for Public Sector Oil Marketing Companies (OMCs) under the Ethanol Blended Petrol (EBP) Programme for the Ethanol Supply Year (ESY) 2024-25. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a revision. Effective from November 1, 2024, to October 31, 2025, the new ex-mill price of ethanol derived from C Heavy Molasses (CHM) will be set at Rs. 57.97 per litre, up from the previous Rs. 56.58 per litre.
The revision is expected to ensure price stability and provide remunerative returns to ethanol suppliers, thereby maintaining a steady supply for the EBP Programme. The initiative is also projected to reduce India's dependency on crude oil imports, resulting in significant foreign exchange savings and contributing to environmental sustainability. As part of the revision, GST and transportation charges will be separately payable, with a 3 per cent increase in CHM ethanol prices aimed at meeting growing blending targets and benefiting sugarcane farmers.
Since its inception, the EBP Programme has played a crucial role in promoting the use of alternative and environmentally friendly fuels. From 2014-15 to 2023-24, it has saved over Rs. 1.13 lakh crore in foreign exchange and substituted approximately 193 lakh metric tonnes of crude oil. Ethanol blending by Public Sector OMCs has surged from 38 crore litres in ESY 2013-14 to 707 crore litres in ESY 2023-24, achieving an average blending rate of 14.60 per cent. The government, advancing its target for 20 per cent ethanol blending from 2030 to ESY 2025-26, now aims to achieve 18 per cent blending during ESY 2024-25.
The visibility provided by the EBP Programme has spurred investments in greenfield and brownfield distilleries, as well as in storage and logistics facilities across the country, fostering job creation and generating shared value for stakeholders. Beyond economic gains, the program stands as a multi-faceted initiative benefiting farmers, reducing foreign exchange outflows, and significantly cutting CO2 emissions.
The CCEA’s decisions extended beyond ethanol procurement to a range of strategic initiatives aimed at bolstering India’s agricultural and energy sectors. These included approval for the Minimum Support Price (MSP) of Kharif crops, the Clean Plant Programme for horticulture development, and the expansion of the Agriculture Infrastructure Fund. Additionally, major allocations were announced for initiatives such as the PM JI-VAN Yojana for biofuel projects, the BioE3 initiative, and the Digital Agricultural Mission.
In a key decision aimed at strengthening India’s critical resource supply chain, the CCEA greenlit the National Critical Minerals Mission with a budget of Rs. 16,300 crore. This mission will focus on exploring and acquiring mineral blocks, developing advanced processing technologies, and recycling critical minerals. The initiative covers 24 critical minerals deemed essential for energy transition, national security, and agricultural development.
Further approvals included investments under the India Semiconductor Mission, space exploration projects, and biotechnology advancements.
