The government is pushing for green mobility, and higher ethanol blending of fuel is an important part of this drive. However, the big questions are: how big is the ethanol business opportunity? And do we have the capacity and the distribution readiness to meet the blending targets?

In an interview to CNBC-TV18, Tarun Sawhney, vice chairman and managing director of Triveni Engineering and Industries, and PS Ravi, executive director-retail at Bharat Petroleum Corporation (BPCL), spoke at length about the same.

First up, Sawhney said, “I see it as a huge opportunity, not just for sugar companies but also for those firms that are utilizing other grains to produce ethanol. The revenue opportunity is to create a Rs 50,000 crore industry and that gets divided between all the market participants, which is very substantial. For Triveni, in a few years’ time, we see this as Rs 1,500 crore topline opportunity.”

Also Read: Here’s how ethanol-blended petrol could be answer to spiralling fuel prices

Meanwhile, Ravi said that BPCL will procure close to Rs 20,000 crore worth of ethanol.

“Enabling environment has been created by the government and the oil industry together and this year, we are going to procure 3,025 crore litres, which is about Rs 20,000 crore worth of ethanol. The GST is at least 5 percent. The interstate movement of ethanol was an issue about a few years back and that has been removed. So currently ethanol is transported over the longer distances,” he said.

Also Read: How cars fuelled by ethanol can add to India’s food inflation

On transportation, Ravi said, “We have also started moving ethanol by rail, both blended petrol, as well as pure ethanol, also is transported by rail. We have now added one more mode of transport, which is through the pipeline.”

For the entire discussion, watch the video

(Edited by : Dipika Ghosh)