DEMAND SUPPLY FOR ETHANOL

 The Center’s ‘Gasohol Program’ of blending 5% ethanol in petrol has given an assured scope for ethanol industry in the country.  The Center’s Kisan-friendly imitative has definitely been a boost to the venture.  Following statistics could show how there is definite market potential for such industry. 

PETROL CONSUMPTION

Source: The information is taken from document published by Govt. of India Ministry of Petroleum andNatural Gas.

In parts of 4 states of Andhra Pradesh, Maharashtra, Punjab, Uttar Pradesh & Goa 5% of ethanol blended petrol has already been started and till 30^th June 2003, it will be fully covered.  Gujarat, Haryna, Karnataka, Tamilnadu and the Union Territories of Chandigarh, Dadra & Nagar Haveli Daman and Div and Pondicherry are also covered till end of July 2003.

 The entire country will be covered in 2^nd Phase and ethanol content to be increased to 10% in 3^rd Phase. 

Most important R & D Studies are successful of blending ethanol with Diesel, which itself is a very significant point in developing ethanol. 

All this significance shows a definite assured market for the industry leading the project to most viable and safe for financial assistance. 

ANHYDROUS ETHANOL POTENTIAL FOR GASOLINE BLENDING

The statistics published by the Ministry of Petroleum the potential is as follows:

For 5% Blend in Gasoline

Requirement on all India Basis               – 500 million ltrs. per annum

Requirement in 8 States                        – 300 million ltrs. per annum

Requirement in UP & Maharashtra  – 40 & 70 million ltrs. per annum respectively

This statistics show a direct potential.

Source: The information is taken from document published by Govt. of India Ministry of Petroleum and Natural Gas.

 Due to govt. promoting ethanol to mix in petrol there is drastic demand for ethanol, which could overcome the existing unutilized capacity and thus creating an excess demand. 

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