Govt Should Give Tax Breaks on Ethanol: Expert Committee

by Yogima Seth Sharma (Economic Times) “In order to bring predictability and to encourage investment by entrepreneurs in expansion or setting up of new ethanol capacities, the government may devise and declare a floor price of ethanol for five years with an escalation clause for purchase by oil marketing companies (OMCs),” the committee said in its report laying out the roadmap for ethanol blending in Indian 2020-21.

The government should consider giving tax breaks on ethanol, fix a floor price for the fuel for next five years and incentivise production and purchase of the greener fuel to reduce India’s dependence on imported gasoline, an expert committee said.

The government is of the view that blending locally produced ethanol with petrol will help India strengthen its energy security, enable local enterprises and farmers to participate in the energy economy and reduce vehicular emissions. However, in December 2020 the cabinet committee on economic affairs advanced the target year for achieving 20% ethanol blending i.... READ MORE