Shri Ram Naik, Honourable Minister of Petroleum & Natural Gas, Government of India, formally effected the National launch of the supply of 5 per cent ethanol blended petrol, called "Gasohol", today. Shri Naik said that he was proud that his dream of helping the sugarcane farmers and building up the oil security apart from benefiting the environment, has become a reality today. The Minister informed that the ethanol-blended petrol would be supplied in parts of Andhra Pradesh, Maharashtra, Punjab and Uttar Pradesh starting from 1st January, 2003, as part of the Government's decision to cover the entire areas of the first phase 9 States and 4 contiguous 4 Union Territories fully by June, 2003. These States are Andhra Pradesh, Goa, Gujarat, Haryana, Karnataka, Maharashtra, Punjab, Tamil Nadu and Uttar Pradesh and 4 Union Territories of Chandigarh, Dadra & Nagar Haveli, Daman & Diu and Pondicherry.

Shri Ram Naik stated that earlier the Government had decided to mandate supply of only 5 per cent ethanol-blended petrol in these 9 States and 4 Union Territories w.e.f. 1st January, 2003 as per notification issued on 12th September, 2002. The preparedness of State Governments, Oil companies, Sugar Co-operatives and other Agencies was reviewed from time to time. Though oil companies have completed their arrangements in this regard, the State Governments other than Maharashtra and Uttar Pradesh could not develop the infrastructure to produce anhydrous ethanol and sought more time. In response to the tenders floated by oil companies for ethanol requirements of 3 months from January to March 2003, there is a short fall of about 35000 KL of anhydrous ethanol. Maharashtra is the only State where infrastructure has been developed fully to meet the requirement. As the current total consumption of gasoline in these 9 States and 4 Union Territories is about 4.6 million tonnes per year, the requirement of ethanol at 5% blend ratio works out to 320-350 million litres.

Recalling the encouragement and guidance provided by the Prime Minister Shri Atal Bihari Vajpayee, Shri Naik said that the 3 Pilot Projects which commenced in the year 2001 in Maharashtra (2) and UP (1) rendered successful results covering more than 300 retail outlets. 6 more projects have been commissioned in Andhra Pradesh, Punjab and UP in 2002. The remaining States would be covered in the second phase of ethanol-petrol blending programme. The content of ethanol blending would be increased to 10% in the third phase. Three pilot projects would be implemented to establish blending of ethanol upto 10% at places where the initial 5 per cent ethanol-blended pilot projects were started i.e. Miraj, Manmad and Bareilly after necessary amendments in norms by BIS. In view of the country's consumption of diesel constituting 80% of auto fuels, the ethanol-blended diesel would be supplied in the fourth phase and Rs. 4 crore have been sanctioned by the Government for R & D Studies in this regard, which are at an advanced stage. An MOU was also signed by the Government of India with Brazil for facilitating transfer of technology in the field of ethanol-blending with petrol and diesel at higher proportion.

Shri Santosh Gangwar, Minister of State for Petroleum & Natural Gas said that the decision to expand nation-wide use of ethanol-blended petrol was taken after successful implementation of pilot project. Ethanol being a renewable source of energy, its blending with hydrocarbon fuels is beneficial to the country as a whole, farmers, the sugarcane related industries and the environment. India imports about 70 per cent of its requirements of crude oil which comes to about Rs. 80,000 crore a year. The farmers gain with better returns as sugarcane finds a new avenue since ethanol is produced from the sugarcane molasses hitherto going waste. The emission of pollutants are lower from ethanol-blended fuels as ethanol acts as an oxygenate helping better combustion.

The national launch of ethanol blended petrol was also attended, among others, by Shri Vilasrao Deshmukh, Chief Minister of Maharashtra and Shri Annasaheb M.K. Patil, Union Minister of State for Rural Development.