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Monday, 06/16/2008 5:55:01 PM

Monday, June 16, 2008 5:55:01 PM

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EXPT News Rough ride for bio-fuel options

Sunday, June 15, 2008 3:48 PM

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News for 'EXPT' - (Rough ride for bio-fuel options)


NEW DELHI, Jun 16, 2008 (Hindustan Times - McClatchy-Tribune Information
Services via COMTEX) -- India's desire to overcome fuel shortage through
alternative energy sources may not see a smooth ride.

In a draft report on bio-fuels, a Planning Commission Expert Group has said
India does not have adequate quantities of ethanol for blending it with petrol
even at 5 per cent levels.

In its draft report to a Group of Minsters (GoM) on biofuels the Plan panel's
expert group has said, "While availability of molasses is adequate, surplus
ethanol available for blending with petrol is not there. This is primarily
because the demand for ethanol to be converted into potable alcohol in the
country is very huge."

The government had planned to introduce mandatory 10 per cent ethanol blended
petrol from October this year, but both the automobile and oil industry has also
expressed reservations about the roadmap.

Presently, 5 per cent ethanol blending is mandatory across the country, except
Jammu & Kashmir, northeastern states and island territories. India is the
world's second largest producer of sugar after Brazil. Ethanol, India is
produced from molasses, a sugar by-product.

The GoM, headed by Agriculture Minister Sharad Pawar, is confabulating on a
national biofuels policy and establishing a biofuels mission.

Citing reasons for short supply of ethanol, the Expert Group, which was
constituted in 2006, pointed out that states restrict free movement of molasses
leading to ethanol shortage to promote potable liquor production within the
state.

The other reason for inadequate availability of ethanol is because of the fact
that domestic molasses remains the cheapest option for the liquor industry as
ethanol imported for potable purposes attracts very high customs duty making
imports unviable.

Tata Motors managing director and president of Society of Indian Automobile
Manufacturers (SIAM) Ravi Kant had shot of a letter last year to the government
indicating that the higher blend would impact vehicles designed before 2002 and
reduce fuel efficiency.

"We would like to bring to your notice that a 10 per cent ethanol blended petrol
(E10), unlike 5 per cent blend would impact vehicle performance, if the
percentage of ethanol varies significantly," Kant said in a letter to the
ministry of shipping, road transport and highways.



To see more of the Hindustan Times or to subscribe to the newspaper, go to

http://www.hindustantimes.com. Copyright (c) 2008, Hindustan Times, New Delhi

Distributed by McClatchy-Tribune Information Services. For reprints, email

tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to

847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303,

Glenview, IL 60025, USA.

Gaurav Choudhury and Samiran Saha


Copyright (C) 2008 Hindustan Times, New Delhi

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