India is highly dependent on imports for its oil consumption, importing 68% of the oil it needs. It is projected to become the fourth largest oil importer in the world by 2025. Most of India's crude oil imports come from Middle Eastern countries like Saudi Arabia and Iran. India also needs to increase its domestic ethanol production substantially to fulfill its goal of blending 10% ethanol into gasoline, which would require an additional 30 million tons of sugarcane annually. The government of India still needs to more strongly support ethanol blending through policies and see ethanol as more than just a fuel.

1. Total Energy Consumption In 2006, India was the seventh largest net importer of oil in the world. With 2007 net imports of 1.8 million bbl/d, India is currently dependent on imports for 68 percent of its oil consumption. EIA expects India to become the fourth largest net importer of oil in the world by 2025.

2. India’s Crude Imports The GOI’s largest crude oil import partner is Saudi Arabia, followed by Iran. Nearly three-fourths of India’s crude oil imports come from the Middle East.

3. Alcohol based chemical Industries: 1,100 million Its. Potable Alcohol requirement: 1,000 million Its. @5% ethanol Blending : 600 million Its. @10% ethanol Blending : + 600 million Its. ---------------------------- 3,300 Million Its . India produces 1.3 billion Its and requires almost 2 billion Its if it has to cater 10% blending. Petrol Consumed in 2006-07: 9,295,000MT.Only 0.64% of petrol is replaced with Ethanol. Alcohol at 10% level requires another 10-15 million KIts which keeps enhancing with transportation needs , so a possible acreage growth of 25-30Million ton based on price rewarded to farmer.

4. Area Under Sugarcane Area Under Sugarcane : 3,329,000 hectares Production of Sugarcane (Yield) : 65 MT/Hectare No of Factories in Operation : 500 & above Average capacity of factory : 3500 Tone Per Day Molasses Production : 6,500,000 MT Molasses Percentage : 4.4% Percapita Consumption of Sugar : 20 Kg Percapita Consumption of Jaggery : 5Kg 12% will go in to Seed purpose and 5% goes to Chewing and Juice manufacturing. 25-30% will go in to Khandasari and Jaggery Production. Only 60% is being used for Sugar production. India requires additional 30 million ton of cane to cater to its blending. Present Acreage has comedown drastically almost 50% due to switchover to commercial crops.

5. Alcohol requirements at 5% blends Year Gasoline Demand MMT Ethanol Demand Th KL Molasses Production MMT Ethanol production Utilisation of ethanol Molasses Th KL Cane Th KL Total Th KL Potable Th KL Industry Th KL Balance Th KL 2001-02 7.07 416.14 8.77 1775 0 1775 648 600 527 2006-07 10.07 592.72 11.36 2300 1485 3785 765 711 2309 2011-12 12.85 756.35 11.36 2300 1485 3785 887 844 2054 2016-17 16.4 965.30 11.36 2300 1485 3785 1028 1003 1754

6. GOI & Policy GOI is still to Comprehend and support Ethanol Blending. It has different outlook to Biodiesel and all support mechanisms and Policy decisions for Diesel which is being heavily subsidised. Plant Biotechnology in Sugar is yet to take shape and we lag to move towards developing Biomass and second generation Cellulosic distillation technologies. Ethanol is still being viewed as Fuel and Oil Companies discuss calorific value not taking in to account it as Oxygenate with advantages in reducing CHG emissions and Non Polluting water bodies. Pro active Decision like blending at Pump and even allowing factory to sell blended fuel would enhance Sugar Industries financial health as well enable realise CDM. This would bring in New Investment and Employment generation in Rural areas and other third party services of Logistics, Infrastructure, Farm equipment, Crop Sciences and even Compostable Plastics.

7. Other Liquid Fuels of Cane Laxmi organic industries of Mumbai has announced Biobutanol plant of 1000MT/Year with Green Biologics UK . Tata's and ISRO are working on Hydrogen Fuelled vehicles . By Phani Mohan, Anagha datta Trade Ayilyam apts-3, Newno-17, SadhullaSt, TNagar, Chennai-17, India. Email: phanis.kancharla@gmail.com