The government has sanctioned Rs 7.26 crore for undertaking research and development studies for blending ethanol with petrol and diesel.
This includes a grant of Rs 4.01 crore for R&D studies using ethanol-diesel blends on Indian engines and vehicles. An amount of Rs 3.25 crore is also earmarked for R&D using ethanol-gasoline blends, including the study to blend 10 per cent of ethanol with gasoline.
This funds will be provided by the Oil Industry Development Board, according to an official press release issued here today.
The R&D project aims at making use of sugarcane molasses for producing ethanol in the country, which will help save foreign exchange by reducing the import dependence of the country for meeting its requirement of hydrocarbons, the release said.
The government has already signed a memorandum of understanding with Brazil for sharing of technology, information, experience and consultancy in blending of ethanol with petrol and diesel. Brazil and the US are the leaders in the use of ethanol-blended fuels.
