Methanol economy not on the back burner, moving along with e-mobility: Niti member

To promote clean energy, the government will soon come up with a road map for production of methanol from coal, Niti Aayog member V K Saraswat said on Tuesday.

Saraswat further said that in the current scenario, it is better to use blended gasoline with methanol and ethanol.

"Methanol economy is not on the back burner, it is moving along with e-mobility We are soon going to come up with a cabinet note on production of methanol from coal," he told PTI.

Methanol is a clear and colourless liquid produced from natural gas, coal and a wide range of renewable feedstock. Also known as wood alcohol, methanol is naturally occurring and biodegradable.

In a bid to lower crude oil import bill, Saraswat said the government will also promote coal gasification to convert high ash coal into methanol that can be used as cooking gas and transportation fuels.

According to the latest estimate, methanol production could cut India's huge crude oil import bill which is pegged at Rs 6 lakh crore per annum.

Recently, Niti Aayog Vice Chairman Rajiv Kumar had said that the Budget (2019-20) has given a clear signal that the government wants to encourage electric vehicles and domestic firms ought to gear themselves to become world leaders in this field.

In the Union Budget, Finance Minister Nirmala Sitharaman announced additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles as part of efforts to accelerate adoption of eco-friendly mobility solutions.

Niti Aayog has planned transitioning to full EVs for three-wheelers by 2023 and two-wheelers with an engine capacity less than 150 cc by 2025.