Question: Ethanol Blended Petrol (EBP) Programme was launched by the Government in … .
a) 2003
b) 2005
c) 2006
d) 2016
Ans: (a)
Related facts:
- On 13th October, 2016 The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved the mechanism for revision of ethanol price for supply to Public Sector Oil Marketing Companies (OMCs) to carry out the Ethanol Blended Petrol (EBP) Programme.
- The administered price of ethanol for the EBP Programme will be Rs.39/- per litre for 2016-17 during ethanol supply period from 1st December, 2016 to 30th November, 2017.
- Additional charges will be paid to the ethanol suppliers as per actual in case of Excise Duty and VAT/GST and transportation charges as decided by OMCs.
- Increase/reduction in the retail selling price of would proportionately factor in the requirement of maintaining the fixed cost of purchase of ethanol during the ethanol supply year.
- The prices of ethanol will be reviewed and suitably revised by Government at any time during the ethanol supply period that is from 1st December, 2016 to 30th November, 2017 depending upon economic situation.
- The revision in ethanol prices will facilitate the continued policy of the Government in providing price stability and remunerative prices for ethanol suppliers.
- Background to the decision:
- Ethanol Blended Petrol (EBP) Programme was launched by the Government in 2003 and extended to 21 States and 4 Union Territories to encourage the use of alternative and environment friendly fuels.
- However, since 2006, OMCs were not able to receive the required quantity of ethanol due to various constraints like State Specific issues, Supplier related issues including Pricing issues of ethanol.
- In order to increase the supply of ethanol, need for a new mechanism for pricing of ethanol was felt. Accordingly, the Government on 10th December, 2014 decided that the delivered price of ethanol at OMC depots would be fixed in the range of Rs. 48.50 to 49.50 per litre including Central/State Government taxes and transportation charges.
- The decision has helped in significantly improving the supply of ethanol and it increased to 67.4 crore litres in 2014-15.
Reference:
http://pib.nic.in/newsite/erelease.aspx
http://energy.economictimes.indiatimes.com/news/oil-and-gas/cabinet-approves-revision-of-ethanol-price-for-supply-to-oil-firms/54830294