Blending 20 per cent ethanol with petrol can help create economic activity of over Rs 1 lakh crore every year in the country and save precious foreign exchange, Union Petroleum Secretary Tarun Kapoor said on Monday. Currently, the petrol sold in the country has above 5 per cent of ethanol, a bio-fuel extracted from various locally available sources.
“We have done a calculation and we see that with the current programmes we have, which means that 20 per cent ethanol blending in petrol and the 5,000 compressed biogas plants which we want to set up, we could have an economic activity worth Rs 1 lakh crore every year,” Kapoor said.
He was speaking at an event organized by Repos Energy and Tata Motors.
Just as the world is switching to newer sources of energy as part of a shift away from fossil fuels, a transition is also underway in India, he said.
However, the country needs more energy, and the movement is from coal to oil or gas in India.