India Pursues 10% Ethanol Blend

NEW DELHI - May 31/07 - SNS -- The Indian government wants to see the country convert to gasoline containing 10% ethanol over the next four years.

Last year, India introduced ethanol-blended gasoline with a 5% blend which is expected to generate demand for 550 million liters of ethanol a year.

The country views ethanol as a means to lessen its reliance on imported oil. It currently imports 70% of the 100 million tons of crude gasolineeum used each year.

India expects to produce ethanol from sugarcane, and possibly from wheat, corn, beet, and sweet sorghum.

In the first phase of the project, ethanol- blended gasoline was supplied through retail outlets in nine States and four Union Territories. These states are Andhra Pradesh, Goa, Gujarat, Haryana, Karnataka, Maharashtra, Punjab, Tamil Nadu and Uttar Pradesh. The four Union Territories include Chandigarh, Dadra and Nagar Haveli, Daman and Diu and Pondicherry. India is expanding the program of supplying gasoline blended with 5% ethanol over the entire country this year.