Government discovers sources of ethanol; biomass stocks to boost

Immediately after cabinet planned an increase of Ethanol per cent to 22.5 as against 10 per cent in petrol and to 15 per cent in diesel, it has now come up with the sources to produce the same. At the seminar on participation of SMEs in capital markets, Union Minister put forth the proposal.

The boost to ethanol production is likely to cut India's huge crude oil imports bill, which is 17 lakh crore p.a. This Ethanol blended fuel needs extracts to neutralise its hygroscopic property.

The Indian Government has planned to produce ethanol from biomass like wheat, cotton and rice straw to blend it further. The rice straw generated from paddy cultivation, which is being burnt away, will now be used for ethanol production.

Argo based companies' stocks, like sugar, wheat and rice and Jain Irrigation will benefit from the process. Moreover, energy and allied stocks like Tata Chemicals, Praj Industries, BPCL, Reliance Industries which are involved in the process of ethanol production through biomass will also get a boost owing to the news.  

Cabinet would also spend Rs 10000 crores for road safety i.e. crash guards, electronic makers and cameras,  which will be installed on highways. Few SMEs like Western Coalfields Limited have generated method of separating sand from coal dumps, thereby reducing sand cost. Moreover, irrigation department has found potential in water generated during mining process.