EBP : Sugar Industry Urges Uniform Policy

New Delhi – The Indian Federation of Green Energy (IFGE) has appealed to the Central Government’s Department of Food & Public Distribution to formulate a uniform policy for the movement of ethanol across states, citing logistical challenges and increased costs due to varying state-level regulations. In a letter addressed to the Secretary Sanjiv Chopra of the Department, IFGE highlighted the hurdles faced by ethanol producers and suppliers, which are hindering the efficiency of the Ethanol Blended Petrol (EBP) program.

State-Wise Restrictions Crippling Ethanol Supply
The letter pointed out that ethanol, classified as a state revenue subject, faces multiple restrictions and control measures across states. For instance:

• Telangana requires entry permits for ethanol tankers, leading to delays and higher costs.
• Rajasthan mandates import permits and excise seals on ethanol-carrying tankers, adding bureaucratic layers.
• Punjab, Haryana, Uttar Pradesh, and Bihar require export permits to send ethanol out of their states, restricting free movement.
• Uttar Pradesh imposes additional fees, mandates GPS-enabled Digilocks, and prohibits ethanol imports from other states.
• Jharkhand requires GPS-enabled Digilocks on ethanol tankers, increasing logistical costs.
• West Bengal demands import permits for ethanol brought into the state, causing delays.

Disparities in Denaturant Requirements
The letter also highlighted inconsistencies in denaturant requirements. While most states accept 40 ppm of bitterant, Gujarat mandates 50 ppm and does not accept brucine/brucine sulfate as a denaturant. Many states require two separate chemicals—one as a denaturant and another as a bitterant—leading to confusion and increased costs for suppliers.

Impact on Ethanol Blending Program
These state-level restrictions have resulted in logistical challenges, increased costs, and delays in ethanol supply, adversely affecting the EBP program. The program, aimed at blending ethanol with petrol to reduce fossil fuel dependency and curb emissions, is critical to India’s energy security and sustainability goals.

Call for Uniform Policy
The IFGE has urged the Department of Food & Public Distribution to:

1. Formulate a uniform policy to allow unrestricted inter-state ethanol transport without additional permits.
2. Standardize a single denaturant for ethanol across India to ensure consistency and reduce compliance burdens.

Supreme Court Ruling and Its Implications
The letter referenced the recent Supreme Court ruling in October 2024, which affirmed states’ authority to legislate on industrial alcohol, including denatured spirits. While the ruling upholds state autonomy, it also underscores the challenges posed by fragmented regulations, necessitating a centralized approach to streamline ethanol movement.

Benefits of a Uniform Policy
A uniform policy would:

• Simplify the regulatory environment and reduce costs for ethanol suppliers.
• Enhance the efficiency of the EBP program.
• Promote ethanol as a renewable energy source.
• Support the government’s goals of energy security and sustainability.

Industry’s Plea

Dilip Patil, Co-Chairperson of IFGE, stated, “A uniform policy on ethanol movement and denaturant standardization is crucial to achieving the objectives of the EBP program. It will not only reduce operational hurdles but also align with the government’s vision of a greener and more sustainable future.”

The Department of Food & Public Distribution has been urged to take immediate action to address these challenges and ensure the smooth implementation of the ethanol blending initiative.

About Ethanol Blended Petrol (EBP) Program:
The EBP program aims to blend ethanol with petrol to reduce fossil fuel consumption and greenhouse gas emissions. The government has set a target of achieving 20% ethanol blending by 2025, a key step toward energy security and environmental sustainability.

The letter on the behalf of IFGE is signed by Co-Chairperson Dilip Patil and director general Sanjay Ganjoo