Position of E85 in India

India was ranked 4th in production of ethanol worldwide.

Year Ethanol production in millions of gallons a year

2006 502
2005 462
2004 449

Source: http://healthindianainsurance.com/716663-Ethanol-fuel.html

Indian government’s policy on alcohol-gasoline blend

In India, ethanol made its foray into the transport sector as a fuel additive in 2001. The
government launched three Ethanol Blend Petro (EBP) pilot projects, the first in Uttar Pradesh,
followed by two others in Maharashtra.

In order to enhance the country's energy security, the Government of India mandated blending of
5 per cent ethanol with petrol in 9 States and 4 Union Territories in the year 2003 and
subsequently mandated 5 per cent blending of ethanol with petrol in 20 States and 8 Union
Territories in November 2006 on an all-India basis except a few North East states and Jammu &
Kashmir.

In September, these oil marketing companies were directed by the government to sell petrol
blended with 5% ethanol in 20 states and four Union territories. While most states have initiated
the blending programme, West Bengal and Orissa are yet to do so and Madhya Pradesh has just
begun negotiations with oil marketing companies.

The biggest procrastinator, however, has been Tamil Nadu, a major sugar-cane producing state.

In a view to give boost to agriculture sector & reduce environmental pollution, Government of
India through a Notification dated September 2002 made 5% ethanol blending mandatory in
petrol, in 9 states and 3 Union Territories. The gasohol program started successfully.

Following are the quantity supplied to oil corporations from March 2003 to September 2004.

Western Zone  1,80,000 KL

Northern Zone 1,40,000 KL

South Zone  50,000 KL

Total  3,70,000 KL
The price of ethanol was given Rs. 17.50 basic & Rs. 22.00 including taxes & duties. Petrol price
to consumer was Rs. 38. at that time & Price of MTBE (methyl tertiary butyl ether a oxygenate
used in Petrol) was Rs. 39. per liter (ethanol is used proportionately as replacement of MTBE) .

The government also gave ethanol blended petrol (95% MS + 5% ethanol) a levy in excise,
which is around Rs. 6. The oil company was saving the same amount by doping ethanol.

Due to the rise in demand of ethanol & assurance of 100% marketing, India currently has 122
plants having a capacity of around 120 Crore liter per annum.

Out of the 120 units, 71 units are in Maharashtra, 12 units in Gujarat, 6 in Andhra
Pradesh, 5 in Tamil Nadu, 14 in Uttar Pradesh, and 10 in other states.

55 units are stand alone plants NOT attached to sugar factories & most of them are in
Maharashtra. Even the Government of Maharashtra gave them a conditional license that they
should sell ethanol only to oil companies.

P.S. 1$ = Rs 45 (approx)