Blending ethanol up to 25% and accelerating flex-fuel vehicle development will help address overcapacity, Distillers Association chief

Spurring blending of ethanol with petrol to the extent of 25% and introduction of flex-fuel vehicles would help address the overcapacity existing in the industry, Vijendra Singh, President of the All-India Distillers Association (AIDA) told reporters Monday.

“The industry holds a cumulative capacity of 2,000 crore litre,” he stated, adding, “Clarity on the two fronts would help utilise the investments that have already been made by the industry.”

Mr. Singh informed that at present there are 380 distilleries in the country, cumulative of sugar and grain-based, dedicated to ethanol. Further, another 33 distilleries are in the pipeline to be instituted.