Govt urges sugar industry to diversify into ethanol-diesel, green hydrogen

5 automakers including Tatas, Suzuki, and Toyota are set to launch flex engine fuel cars in the market, Gadkari said and urged the tractor makers to start manufacturing tractors on alternative fuels

Road, Transport and Highways Minister Nitin Gadkari on Thursday called upon the sugar industry to explore multiple avenues for diversification, including ethanol-diesel blending and green hydrogen production.

Addressing the annual general meeting of the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) virtually, the minister emphasised the need for setting up ethanol and CNG pumps, including through private sector participation.

There is a huge potential for flex engines, ethanol-based engines, and bioCNG as alternatives to fossil fuels.

Five automakers including Tatas, Suzuki, and Toyota are set to launch flex engine fuel cars in the market, he said and urged the tractor makers to start manufacturing tractors on alternative fuels.

The minister suggested examining possibilities of exporting ethanol to neighbouring countries like Bangladesh, Bhutan, Nepal and Sri Lanka to expand market opportunities.

Bio-bitumen production using lignin and biomass sources, along with green hydrogen generation from sugar industry infrastructure, were highlighted as potential areas for expansion.

He emphasised the potential of green hydrogen as an alternative fuel source and suggested using existing infrastructure in the sugar and ethanol industries to produce green hydrogen.

"I know that making sugar is not an attractive job, but at the same time, because of ethanol, CNG, hydrogen and other by-products, we can increase the productivity and profitability in the industry," he said.

"The industry must focus on increasing sugarcane productivity through modern techniques like nano-fertilizers and drone spraying," the minister said.

The government will also consider the industry's request for sugar exports and minimum selling price (MSP), the minister said.

"I will try my level best to help you with that because this is very important for the country and for the farmers. We have to find out some way out," he added.

These initiatives are aimed at enhancing the sector's viability while protecting the interests of both consumers and farmers, according to the minister.