| Date: |
18-12-2015 |
| Subject: |
Policy on flexi-fuel vehicle by January 26, says Gadkari |
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NEW DELHI: Transport minister Nitin Gadkari said he will issue a policy on flexible fuel engines by January 26. He will also seek to convince the petroleum industry about the merits of biofuel, which it's currently not too keen on.
The move will help absorb extra ethanol supplies in the country and reduce pollution while providing a new market for the sugar sector.
"We are working on a policy on flexi-fuel vehicles, which can run entirely on ethanol, but also have the option for petrol. I've told my officials to expedite work on this so that I can announce this before January 26," said Gadkari at the annual general meeting of the Indian Sugar Mills Association (ISMA).
Citing the example of Brazil, the minister said that such vehicles were popular there. "This will not only cut crude oil imports, but help in addressing the problem of pollution," Gadkari said.
The transport minister has also been trying to persuade automobile manufacturers to support him. "Even if they don't, then we will make efforts to bring them on board. This will happen for sure. The petroleum industry is not keen on biofuel... But we will take everyone along with us," he said.
Emphasizing the need for more mills to manufacture ethanol, Gadkari said its proportion in blended petrol should rise to 22% from the current 10%.
"Out of the 500 sugar mills in the country, only 130 have distillation facilities. I understand the sugar sector is facing problems. There is no point in manufacturing sugar. This is the time the sector should focus on increasing ethanol production instead of sugar for survival," he said.
ISMA president A Vellayan said ethanol supplies in the 2014-15 season (October-September) were expected to be around 125-130 crore litres, almost double that of last year.
"Most impediments in boosting ethanol production in country are because of controls exercised by states. Some of the state governments levy export and import duties on inter-state movement of ethanol, which in some cases is up to even 8% of the final price realization," he said.
Source : economictimes.indiatimes.com
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