Push for bio-fuel to cut cost

The government is promoting the use of bio-fuel in a big way to cut the crude oil import bill by Rs 12,000 crore over the next four years, Prime Minister Narendra Modi said here on Friday.

By Our Special Correspondent
  • Published 11.08.18
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Narendra Modi with other Union ministers in New Delhi on Friday. PTI

New Delhi: The government is promoting the use of bio-fuel in a big way to cut the crude oil import bill by Rs 12,000 crore over the next four years, Prime Minister Narendra Modi said here on Friday.

"As a result of the efforts of the Centre, ethanol blending in petrol has increased from 38 crore litres in 2013-14 (ethanol supply year) to an estimated 141 crore litres in 2017-18....this saved close to Rs 4,000 crore in oil import bill.

"The target is to raise ethanol production for doping in petrol to 450 crore litres in four years that will save Rs 12,000 crore in import bill," Modi said at a function to mark the World Biofuel Day.

India spent nearly $88 billion (about Rs 5.9 lakh crore) on the import of crude oil in 2017-18.

Modi said about Rs 10,000 crore was being invested in setting up 12 bio-refineries in the country that will produce fuel from crop stubble and residue as well as urban waste.

"Biofuels can help reduce import dependency on crude oil. They can contribute to a cleaner environment, generate additional income for farmers and create rural jobs," he said.

At present, petrol contains 3.8 per cent of ethanol. The bio-refineries being set up will generate about 1.5 lakh jobs in the entire value chain, he said.

"Our target is to raise blending of ethanol in petrol to 10 per cent by 2022 and to 20 per cent by 2030," he said.

GAIL fares well

GAIL, the country's largest natural gas marketer, reported a 23 per cent rise in its April-June quarter net profit on better margins in gas trading and petrochemicals business.

Net profit of Rs 1,259 crore in the first quarter of the 2018-19 fiscal was higher than Rs 1,026 crore in the same period of last financial year.