Fill petrol anywhere in India, about 20% of what goes into the tank is ethanol – alcohol derived from sugarcane juice and maize. This, govt says, has been done to reduce petroleum imports. It sounds like a smart move, given that India imports close to 90% of the oil it burns.
But substituting petrol with ethanol won’t make sense if the ethanol itself is imported. That’s why, in 2019, govt moved biofuel imports – ethanol is a type of biofuel – from the “free list” to the restricted one. Ethanol could no longer be imported for blending with fuel.
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