Latest news with #EthanolSupplyYear
Time of India
10-07-2025
- Business
- Time of India
India's crude oil production falls to 28.7 MMT in FY25, self-sufficiency at 12.3%
New Delhi: India's crude oil production, including condensate, declined to 28.7 million metric tonnes (MMT) in the financial year 2024-25, while the self-sufficiency in petroleum products remained nearly flat at 12.3 per cent, the Petroleum Planning & Analysis Cell (PPAC) said in its latest Ready Reckoner. The share of onshore and offshore fields in the total crude oil output stood at 47 per cent and 53 per cent, respectively. The Western Offshore region contributed the highest share of crude oil at 43 per cent, followed by Gujarat onshore at 17 per cent, Assam onshore at 16 per cent, and Rajasthan onshore at 12 per cent. According to the report, the production of petroleum products from indigenous crude and condensate was 29.3 MMT in FY25, while the total domestic consumption stood at 239.5 MMT. The crude oil self-sufficiency, calculated as the ratio of indigenous production to domestic consumption, was 12.3 per cent during the year, marginally up from 12.2 per cent in 2023-24. LNG imports rise 12.3% to 35.72 BCM in FY25; natural gas production declines India's total liquefied natural gas (LNG) imports increased by 12.34 per cent to 35,720 MMSCM (million metric standard cubic metres) in FY 2024-25 from 31,795 MMSCM in FY 2023-24. In dollar terms, LNG imports rose by 11.21 per cent to USD 14,908 million from USD 13,405 million during the same period. However, the gross production of domestic natural gas declined by 0.89 per cent year-on-year to 36,113 MMSCM in FY25 from 36,438 MMSCM in FY24. Net production after flare and internal use stood at 30,047 MMSCM. The CGD (City Gas Distribution) sector accounted for 21 per cent of total gas consumption in FY25, followed by the fertiliser sector at 29 per cent, power at 12 per cent, refineries at 8 per cent, and petrochemicals at 5 per cent. Overall, India's total gas consumption, including LNG imports and internal use, stood at 71,314 MMSCM in FY25, an increase of 5.63 per cent over 67,512 MMSCM in FY24. Retail fuel outlets reach 96,726; ethanol blending at 18.4% in current supply year The number of retail outlets (ROs) for petroleum products in the country increased to 96,726 as of April 1, 2025. Of this, 27,748 outlets are in rural areas. The number of POL terminals and aviation fuel stations stood at 314 and 302, respectively. India achieved an ethanol blending rate of 18.4 per cent in the ongoing Ethanol Supply Year (ESY), up from 14.6 per cent recorded in ESY 2023-24. 'The programme is on track to achieve 20 per cent blending objective well before the timelines,' the PPAC report stated. City gas sales rise 15.2% in FY25; CGD network expands City Gas Distribution (CGD) sales increased by 15.2 per cent to 15,576 MMSCM in FY 2024-25 from 13,524 MMSCM in FY 2023-24. During the second half of FY25 (October 2024 to March 2025), total CGD sector sales rose to 42.67 MMSCMD, up 2.5 per cent from 41.63 MMSCMD recorded in the preceding six-month period. In terms of distribution infrastructure, the country had 8,067 CNG stations and over 1.51 crore PNG (piped natural gas) connections as on March 31, 2025, according to data from the Petroleum and Natural Gas Regulatory Board (PNGRB) cited in the Ready Reckoner.
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Business Standard
15-06-2025
- Business
- Business Standard
Grainspan invests ₹520 cr in ethanol units, benefits from govt's subsidy
Encouraged by the Union Food Ministry's interest subsidy scheme, Grainspan Nutrients has invested ₹520 crore to set up two grain-based ethanol plants in Ahmedabad and is supplying green fuel for blending with petrol. The two plants, which use maize and rice as feedstock, have a total installed capacity of 350 kilolitres per day. Grainspan's first grain-based ethanol plant, located at Bhamsara Village in Ahmedabad district, became operational in May 2023 with a capacity of 110 kilolitres per day. This plant was Gujarat's first grain-based ethanol facility. Enthused by the success, the company last month commissioned its second facility, which has been built at a cost of Rs 360 crore with an installed capacity of 240 kilolitres per day at the same location. The company supplies ethanol to Oil Marketing Companies (OMCs) under the Ethanol Blending Programme (EBP). "There are three grain-based ethanol plants in Gujarat, of which two facilities are being operated by us. We were the first to set up such a plant in the state, thanks to the central government subsidy," Grainspan Nutrients Pvt Ltd CEO Manoj Khandelwal said here. He said there is an immense growth potential in ethanol production in India, not only to meet domestic demand but exports also. Grainspan, which has been into manufacturing of food ingredients since 2014, forayed into ethanol a few years back to diversify its business taking advantage of interest subsidy. The decision has helped the company increase its turnover which touched Rs 760 crore last fiscal. Grainspan Ingredients Pvt Ltd CFO Pankit Shah said the company has invested a total of Rs 520 crore in these two plants, which are fully operational. "The first plant has been set up with the help of Central Government interest subsidy. We have taken a loan of Rs 120 crore for the first plant," he said, adding that there is no interest subsidy on the second plant. In the 2024-25 Ethanol Supply Year (ESY) that runs from November to October, Grainspan Nutrients will supply around 8 crore litre to OMCs at a fixed rate of nearly Rs 72 per litre. In the next ESY, the figure will reach 12 crore litres generating a topline of more than Rs 800 crore. Apart from grain-based, Gujarat has 13 sugarcane-based distilleries. Till June 8 of the current ESY, the ethanol blending has reached 18.9 per cent in the state with the supply of nearly 33 crore litres of green fuel. The Centre has notified various ethanol interest subvention schemes from 2018 to 2022 (in 2021 ethanol production from grain was also included under these schemes) to encourage sugar mills and distilleries to enhance their ethanol production capacities. Under all these subvention schemes, the government is facilitating project proponents to avail loans from banks/financial institutions. It provides interest subvention at 6 per cent or 50 per cent of the interest, whichever is lower, for a period of five years including one-year moratorium period. A new interest subvention scheme for cooperative sugar mills has also been notified in March 2025 for conversion of their existing sugarcane-based plants into multi-feed-based ethanol plants. Grainspan CFO said that the company's turnover rose 20 per cent to Rs 758 crore last fiscal, of which Rs 416 crore came from the food business and Rs 342 crore from ethanol. Pan-India, many companies and cooperatives have taken advantage of the interest subsidy incentive to set up new or expand ethanol-making capacities with sugarcane and grain (maize and rice) as feedstock. As a result, India's total ethanol-making capacity has jumped over four times in the last 11 years of the current government. Till year 2013, ethanol distillation capacity in the country was 421 crore litres. At present, the ethanol production capacity in the country has reached 1,810 crore litres, which includes 816 crore litres of molasses-based capacity, 136 crore litres of dual feed capacity and 858 crore litres of grain-based capacity. Additional capacity has led to an increase in percentage of ethanol blending with petrol. Till year 2013, supply of ethanol to OMCs was only 38 crore litres with blending levels of only 1.53 per cent in 2013-14 ESY. Production of fuel-grade ethanol and its supply to OMCs has increased by more than 18 times from ESY 2013-14 to ESY 2023-24. In ESY 2023-24, about 707 crore litres of ethanol has been blended by OMCs thereby achieving a blending of 14.60 per cent. In the current ESY 2024-25 till May 25, about 548 crore litres of ethanol has been blended by achieving a blending of 18.74 per cent. The government has set a target of 20 per cent blending by 2025-26.
Indian Express
27-05-2025
- Business
- Indian Express
Centre asks Punjab govt to reconsider fee levied on ethanol production
The Union Ministry of Petroleum and Natural Gas has written a letter to Punjab government asking it to reconsider the fee which has been levied in the state's excise policy on production of ethanol. The letter, accessed by The Indian Express, has been written by Praveen M Khanooja, Additional Secretary in the petroleum ministry to Punjab Chief Secretary KAP Sinha on April 8. The letter states that the provision to levy Regulatory Fee (Ethanol Permit/Pass fee) in Excise Policy 2025-26 may restrict free movement of ethanol within and outside the state, which will further increase the cost of ethanol blended petrol. 'It has been brought to the Ministry's notice by Oil Marketing Companies (OMCs) that as per the excise policy of Punjab state, there is a substantial increase in the license fee, annual renewal fee and capacity enhancement fee for Distilleries (Part D, Para 6 a & b of Punjab's Excise Policy). Also, Para 29 'Regulatory fee on ethanol' of the Policy makes a provision to levy Regulatory Fee (Ethanol Permit/Pass fee) @ Rs. 1 per Bulk Litre,' read the letter. The petroleum ministry pointed out that the Union government has been promoting ethanol blending in petrol to give boost to domestic agricultural sector and associated environment benefits. 'Over the last one decade, ethanol blending has improved from 1.5 per cent to more than 18 per cent and the country is on course to achieve the 20 per cent blending target by Ethanol Supply Year (ESY) 2025-26. Punjab has made significant contributions to the success of this programme by achieving a blending percentage of 18.8 per cent in ESY 2024-25, as on March 2025,' the letter adds. It goes on to add apart from augmenting distillation capacities of existing plants, dedicated ethanol plants are being commissioned in Punjab providing employment opportunities and giving boost to circular economy. 'The increased fee in the Excise Policy 2025-26 is likely to increase the cost of ethanol blended petrol, affecting the viability of ethanol producers/suppliers and OMCs. The provision to levy Regulatory Fee (Ethanol Permit/Pass fee) in Excise Policy may restrict free movement of ethanol within and outside the state, which will increase the cost of ethanol blended petrol,' Khanooja says in the letter. The petroleum ministry official urged the Chief Secretary to review the Excise Policy and reconsider any levy/fee on fuel ethanol production/consumption/transportation in Punjab to facilitate smooth off take and free movement of green fuel ethanol for the benefit of environment and farmers. The dual benefits of ethanol blending — reducing carbon emissions and supporting the agricultural economy — have been highlighted by experts since long. By promoting maize cultivation, the initiative aims to provide farmers with an alternative crop, ensuring income stability while contributing to environmental sustainability through cleaner fuel alternatives. Ministry officials say achieving the 20 per cent ethanol blending target will reduce reliance on fossil fuels, lower greenhouse gas emissions, and align with India's climate goals. 'Increased maize cultivation and ethanol production will create employment opportunities in Punjab, particularly through the establishment of dedicated ethanol plants. Encouraging maize cultivation may diversify Punjab's agricultural landscape, reducing dependence on traditional crops like wheat and paddy, which could lead to more sustainable farming practices,' the official added.
