India to Increase Mandatory Ethanol Usage by 2008
India, China ………………. China, India. These are two of the world’s most promising economies. In a surprising move, the government of India has increased the mandatory ethanol blending in fuel to 10% by 2008 as opposed to the current 5% requirement. This mandatory blending requirement will be applicable to most Indian States.
Recent $90 oil prices have put a tremendous burden on the public sector and if oil prices remain at $90 per barrel, the deficit would be Rs1040bn on the public exchequer. The oil prices coupled with the fact that the annual growth rate of automobiles is 16% makes the search for strategies for fuel conservation and the reduction of harmful emissions almost mandatory to preserve the heath of the Indian state.
S Sundareshan, Additional Secretary, Ministry of Petroleum and Natural Gas, Government of India had this to say,
- “This huge outflow of foreign exchange can be moderated by enhancing the fuel efficiency and conservation that can have direct bearing on the fiscal deficit of the economy.”
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