Media365
Ethanol, widely known as a biofuel blended with petrol to power vehicles, could soon find its way into Indian kitchens as the Centre prepares a policy framework to promote it as an alternative household cooking fuel alongside liquefied petroleum gas (LPG), the Economic Times reported, citing industry executives familiar with the discussions.
According to the report, the Ministry of Petroleum and Natural Gas is working on a policy that would pave the way for ethanol-based cooking fuel. The framework is expected to address issues such as subsidies, supply chain development and distribution infrastructure to encourage household adoption.
Industry bodies representing fuel suppliers are also engaged in parallel consultations with the government over the proposed policy, the report said.
“An alternative clean cooking policy is in the works that would help ethanol to be adopted alongside LPG as a household cooking fuel,“the report said, adding that the policy could be ready by September.
Subsidies under consideration
The report said the government may introduce financial incentives to encourage the transition to ethanol cooking. These could take the form of a one-time capital subsidy for purchasing ethanol-based cooking equipment or an ongoing fiscal support mechanism.
The move builds on earlier efforts to explore ethanol as a cleaner cooking fuel. In April, Economic Times had reported that ethanol-powered cooking stoves were being tested at the government’s direction as an alternative to conventional LPG.
Ethanol is a renewable fuel produced through the fermentation of sugar-rich crops and food grains. India has significantly expanded its ethanol production capacity in recent years, largely driven by the government’s ambitious ethanol blending programme for petrol.
Surplus ethanol creating new opportunities
According to a May report by CareEdge Ratings, India’s ethanol production capacity has crossed 20 billion litres annually, with another 4 billion litres expected to be added during the current financial year.
Of this, around 11 billion litres are consumed under the government’s E20 petrol blending programme. Another 3 billion to 3.5 billion litres are used by the liquor, pharmaceutical and chemical industries, leaving nearly 7 billion litres of surplus production capacity.
The report said this excess capacity is prompting policymakers and industry to explore new avenues for ethanol consumption, including household cooking fuel and exports to neighbouring countries such as Nepal, Bangladesh and Indonesia, where ethanol blending targets exist but domestic production remains limited.
Energy security concerns add urgency
The proposal comes amid renewed focus on India’s energy security following supply disruptions caused by the conflict in West Asia.
According to the report, industry executives believe ethanol can reduce India’s dependence on imported LPG, much of which is sourced from Gulf countries and transported through the strategically important Strait of Hormuz.
“We all saw how the West Asia war impacted India’s LPG supply. It is a good option to use excess ethanol capacity as an alternative fuel to LPG and reduce imports of the fuel,” another industry executive was quoted as saying.
India has diversified some of its LPG sourcing since the conflict began, but it continues to rely heavily on imports from the Gulf. The report noted that state-owned oil companies are simultaneously working on a plan to create nearly 30 days of strategic LPG storage to strengthen the country’s energy security.
Separately, a report by the International Institute for Sustainable Development released earlier this year estimated that transitioning households towards electric cooking and biogas could save India more than Rs 2 lakh crore in cumulative LPG subsidies by 2050. The proposed ethanol cooking policy could become another component of the government’s broader clean cooking strategy if approved.
