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Operationalization of Ethanol use in the Transport Sector in India: Issues and Options

Current Status
  • BIS specifies use of 5% ethanol-gasoline blend without any engine modifications
  • R&D trials have proved successful w.r.t. engine performance and emissions
  • As part of initiative Govt sent a delegation to Brazil and the US
  • Govt to form an inter-ministerial Task Force to study ethanol use in the transport sector
  • Pilot facilities by the Govt in Maharashtra and Uttar Pradesh

    • Issues on Ethanol use
  • Policy
  • institutional
  • legal
  • Technical
  • type of vehicles
  • technology - fuel production
  • blending
  • infrastructure & logistics
  • engine performance & compatibility
  • emission standards
  • Commercial
  • supply & distribution network
  • purchase and sale
  • price & taxation
  • duties for inter-state movement
  • Financing of fuel production facilities
    • Policy Issues
  • Institutional
  • timeframe (long-term or phased manner)?
  • blending range & vehicle compatibility?
  • geographical or other preferences?
  • ethanol substitution target?
  • steps required to achieve uniform policy across the country?
  • Institutional mechanisms - developing linkages?
  • Legal
  • Fuel grade certification/label/inspection
  • New project clearances and approvals
  • Auto certification
  • Emission certification
  • Penalties or legal measures for non-compliance
  • Timeframe
  • Public access to information

    • Technical Issues
  • type of vehicles - gasoline specific
  • Fuel production
  • Raw material & production technologies
  • Storage and supply options
  • blending - types & limitations
  • infrastructure & logistics
  • retrofitting/new facility/carrier
  • engine performance & compatibility
  • mileage/power/lifetime/maintenance
  • emission standards - emissions/statutory requirements

    • Commercial Issues
  • supply & distribution network - agents/licenses
  • purchase and sale - marketing rights/agencies
  • price & taxation - state/center/protective mechanisms/appropriate pricing
  • duties for inter-state movement - existing/concessional
    • Financing Issues
  • project size (economic scale)
  • financing agencies
  • project clearances & approvals
  • raw material procurement & fuel-ethanol purchase agreement
  • fiscal and financial incentives

    • India Ethanol Coalition
  • Proposed as a knowledge pool
  • To assist in policy, technical, commercial, and financing issues
  • To assist in building government-industry linkages
  • To assist in information dissemination
  • Interact with coalitions abroad

    • Agenda
  • Identify policy, technical, commercial and financing needs
  • Identify barriers and their removal mechanisms
  • Identify roles and responsibilities
  • Identify methods to establish procedures and guidelines
  • Role of India Ethanol Coalition
  • Action plan formulation and operationalization approach
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