[lapis_lazuli]

I think it is about revenue. The amount of taxes on fuel and the corresponding addition to the exchequer can never be matched by EVs plying on road and consuming electricity. Plus, ethanol + petrol is less petroleum per liter : there is no intention to reduce prices, so the revenue earned reselling petroleum is higher.

[anjan_c2007]

As regards ethanol blending, it gives very rosy picture wherein scores of Babus must have made very, very encouraging presentations with facts and figures of the five figure (in crores of rupees) savings in foreign exchange to the politicians on this topic, that was evidently parroted as a govt decision.

No one has given any of the minus points of ethanol blending in any official handout to the media or elsewhere. How can we expect these generalist Babus to be aware of the negative points? Condensation of moisture content in petrol if vehicle kept stagnant for a long time and the fact that even if there's a little water in the tank (rarely avoidable in India) are sure shot engine life shortening or even engine killing recipes.

And lastly, with the blending that's reaching about 10% as of now, has there been or was any price correction for petrol? Transparency is totally lacking on the petrol pricing front, ever since such blending commenced and the loot of the consumers continue.

As far as EV's are concerned the recharging infrastructure, ultra fast recharging points and a longer range per charge, together with price corrections for the EV's will go a long way in reviving demand.

[ruzbehxyz]

Modi govt’s ethanol blending plan aims to get Rs 41,000 cr investment, lower oil import bill.

The central government is expecting investments of up to Rs 41,000 crore to help India achieve its ethanol blending target of 10 per cent by 2022 and 20 per cent by 2025.*
Earlier this month, Prime Minister Narendra Modi advanced India’s targeted transition to 20 per cent ethanol blending by five years, to 2025 from 2030, with an aim to begin the rollout of this fuel — “E20” — by 2023.

Source: https://theprint.in/economy/modi-gov...t-bill/678439/

[stallmaster]

https://www.youtube.com/watch?v=OpEB6hCpIGM

Contrary to popular opinion, biofuels aren't exactly a boon. Instead, their cultivation destroys water tables, especially in groundwater-starved sugarcane belts.

[tj123]

My view is purely from a consumer point of view. Government dopes ethanol (8-10%) with fuel, ethanol costs approximately Rs.60/l post taxes. Ideally the price of the fuel should come down proportionally based on the doping ratio. But we consumers will still pay at 100/l at the pump so the Government wins with all the excise and taxes.

Secondly, pound for pound calorific value of ethanol is roughly 30% lower than petrol. Hence in real life scenarios there will be a mileage drop of 3-5%, more the ethanol ratio more will be the mileage loss. So in short with this policy we as consumers don’t gain anything in fact we are at loss both ways.

Here is a good read on this topic link

[shortbread]

The problem with EV adoption is the reluctance among the current crop of auto makers to adapt to this drastic change, until and unless a market disruptor enters the picture. Tesla was what made the likes of GM & Ford to have a long hard look at its EV portfolio and be aggressive in this space.

From a traditional automakers standpoint EV investment also means the inability to use its current manufacturing and technological prowess. eg. IC engines and related ancillaries like gearboxes etc and the following after sales business like spares, servicing etc.

This is a big change in their revenue stream and they are reluctant. The EV 2 wheeler space has huge potential but on one end customers have competitively priced but questionable quality chinese kit assembled scooters OR pay a massive premium for the likes of Ather as well as the never available TVS/Bajaj electric scooters.

Once OLA comes into the picture and makes an impact in the market, we will see a big difference in EV two wheeler adoption.

[AZT]

Reading between the lines, currency depreciation is another thing govt expects. Makes perfect sense why we'd want to go for Ethanol mixing. The water use is a big downside but unless we plan to hold currency at same level we'll be hit with an annual ~ 3% charge just because of USD:INR falling rate.

Water conservation is something close to me and I think I'll move to EV's earlier than I wanted to.

[Thermodynamics]

At the end of the day as a vehicle owner we are going to pay more because of lower calorific value of ethanol as compared to regular gasoline. That means we would have to fill more often and may also visit garage more often.

[alpha1]

By the way, Govt (via public sector undertakings) is setting up 2nd Generation ethanol plants across India which utilizes biowaste.

What is 2G ethanol: https://praj.net/business-lines/bio-...ation-ethanol/

So the concern of diverting foodstock for ethanol feedstock should get minimized with due course of time.

[iamitp]

Let's not forget that Bio-ethanol can also be produced from crop stubble, yes the ones which are burned causing air pollution, and 'unfit-for-consumption' food grains, which are a routine feature in our country due to the present logistics infrastructure and inclement weather conditions.

[landcruiser123]

Many countries like the US & Brazil have tried Ethanol & Ethanol blend fuel with mixed success. Too many adaptations need to be made to have smooth running, and cars often have issues. In a country where many people don't get enough to eat, I'd hate to see valuable agricultural land used for making fuel.

EVs are far away, but the government should have prioritized hybrids (the ones that have a decent EV only range) in the 2010s itself. With hybrids, increasing city FE from 10 to 15 kmpl will result in massive savings in fuel import.

[Hayek]

I am shocked that the government would pursue such a stupid policy such as adulterating Petrol with ethanol. Classic example of how politically influential lobbies lead to decisions which make no sense from any perspective whatsoever.

1) As the OP had mentioned, growing sugar cane is a terrible use of water resources in a water starved country like India. It is among the most water inefficient crops. It is not suitable for cultivation in India.
2) The drought in Marathwada represents one extreme example of the negative impact of sugar cane cultivation. But even in the Gangetic plain, farmers are increasingly relying on unsustainable extraction of ground water. The water table in Western UP is falling by between 0.5 m and 0.8 m every year. The pace of ground water depletion will rise faster if sugar cultivation is encouraged through ethanol mandates. The water table in UP is still at about 10-15 m - but it could reach Punjab type levels of 50-100 m in a few decades if this trend continues.
3) Ethanol also damages car engines as others have mentioned.

The fact is that we should be looking to reduce sugar cane and rice cropping in India - and adulterating Petrol with ethanol is not the way to do that

The argument on saving foreign exchange is stupid / we have moved back to an idiotic forex scarcity mindset and are repeating the same mistakes we made in the 1970s and 1980s. Forex markets correct for our competitiveness. By restricting imports to protect uncompetitive local manufacturing industries, we keep the INR at an over valued level and make
our export industries less competitive.

[FrozeninTime]

Originally Posted by Hayek

By restricting imports to protect uncompetitive local manufacturing industries, we keep the INR at an over valued level and make
our export industries less competitive.

Don't you think free falling rupee will push prices of essential commodities and inturn lead to high inflation and thereby affecting poor.

P.S : We never address the elephant in the room that it is tough to Business in India due to various lobby group which is reason for all maladies in India.

[Gaur]

Originally Posted by Maverick_4662

Diverting 7800 Tonnes of Grains with the FCI Which were procured for food security to produce ethanol while there are millions who cannot get even two nutritious meals a day seems quite proposterous. The idea behind this push is definitely to meet the Paris agreement goals and lower our huge Fuel import bill and Forex drains but at what cost? Millions staying hungry? Don't agree with this.

Sorry but you seem to be mixing up Feeding People and providing Nutrition to People.

At the moment we have enough to feed (wheat/rice) people but not enough nutrition for which we need Pulses, which is actually in short supply.

Grains being diverted for ethanol production might actually be either surplus wheat or Rice, which we have excess of thanks to high MSP provided to them.

The farm bills intended to address this problem as well, but thanks to short-sightedness unfortunately stuck.

[batish]

Originally Posted by Gaur

Grains being diverted for ethanol production might actually be either surplus wheat or Rice, which we have excess of thanks to high MSP provided to them.

The farm bills intended to address this problem as well, but thanks to short-sightedness unfortunately stuck.

Completely off topic here. But sir, How? How are the farm bills intended to address this problem?