South Asia

India's shift to 'gasohol' could backfire
By T V Padma

NEW DELHI - The Indian government's latest move to get automobile owners to drive greener - by using "gasohol" - comes many years too late, but many hope that it will lead to cleaner air and relief on the country's huge oil import bills.

For two weeks now, the use of gasohol - a mix of petrol and ethyl alcohol - has been mandatory in nine states and four centrally administered union territories. The government plans to widen the scope of the program later in the year.

Debate in India on whether gasohol should be used or not has been a subject of debate and indecision for 30 years, which is why skeptics claim that the announcement that took effect January 1 has more to do with economic compulsions and domestic politics than just environmental concerns.

"Gasohol is a step in the right direction and should be welcomed, even if it has taken long to arrive," said Professor H S Mukunda, an expert on biomass-based renewable energy systems at the Indian Institute of Science in Bangalore.

Studies have shown that a blend containing 5 to 10 percent of ethyl alcohol can reduce carbon monoxide and carbon dioxide by 10 to 30 percent. Among the states listed in the first phase are the commercially significant and populous states of Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Tamil Nadu and Haryana.

All are major sugarcane producers, where huge mounds of unused molasses are piling up by the tonne. This is significant because sugarcane molasses is the raw material usually used in producing fuel-grade ethanol, a high-octane water-free alcohol.

This is also why many see India's powerful sugar lobby behind the decision to introduce gasohol. "Scientists have been working on ethanol and advocating it for years. Yet the government showed no interest until now," pointed out Anumita Mazumdar, coordinator of the air pollution unit at the Center for Science and Environment (CSE), which has been advocating the blending of alcohol with petrol for almost five years. Be that as it may, "This is one case where politics helped the environment," Mazumdar said.

Skepticism about the government's motives also appears to stem from the fact that Petroleum Minister Ram Naik is from the sugar-surplus state of Maharashtra. At the launch of gasohol, Naik said, "This move will also greatly benefit sugarcane farmers in the country."

Sweeteners have been lined up to boost the gasohol effort. For instance, the Maharasthra state government has announced a small rebate in excise duty and the waiver of sales tax for gasohol manufacturers.

These may go some way toward closing the large gap between supply and demand. According to the country's Ministry of Petroleum, India produces two-thirds of its requirements of the blended fuel - 200 million liters against an estimated demand of 320 million liters.

Some of the estimated demand may also be met through the efforts of public sector giant Indian Oil. The company is researching plant-derived non-edible oils - like that produced by the Jatropha tree - and plans to launch a blended fuel that contains 10 percent alcohol by 2004. An Indian Oil scientist said that the company hopes biodiesel "may hit the market in four years".

Gasohol is actually the second green fuel that India has adopted. Last year, after a spirited campaign led by the CSE, the Supreme Court issued a directive that led to the Delhi state government's banning of use of diesel by buses, which now use compressed natural gas. Air pollution has since decreased.

The switch to alcohol-blended petrol is also expected to help bring down India's huge crude oil import bill. In the last financial year 2001-02, the country imported 78 million tonnes of crude - 70 percent of its needs - at a cost of US$16 billion. To put that in perspective, over the same period, India's foreign exchange reserves grew by just $11 billion.

"Even this 5 percent blend will make a substantial difference to our foreign exchange reserves," a petroleum ministry official said. Five percent of a liter of gasohol will be ethyl alcohol in this first phase of the program, with the blend rising to a proposed 10 percent from October 2003.

Those in India who must now tank up with the new fuel blend will find that it is slightly cheaper than regular petrol, by one rupee (about 2 US cents) per liter - if motorists can find the blend.

"I knew nothing about this. I do not even know how many gas stations actually have the fuel," said Venkat Subramaniam, a Hyderabad-based engineer. Indeed, some states said they were caught unawares by the introduction of gasohol, although finance ministry officials point out that mention of gasohol use is in India's 2002 budget, announced in February last year.

Happily for motorists like Subramaniam, the 5 percent blend requires no modification to vehicle engines - but a blend containing more than 10 percent ethyl alcohol will. Brazil, whose efforts to develop environment-friendly fuel served as a role model for India, uses a 22 percent alcohol mix in its blended fuel.

The petrol-ethyl alcohol blend is promising, but the challenge lies in the use of diesel, which, despite the ban on buses' use of diesel last year, accounts for almost four-fifths of Indian automobile fuels. A blend with diesel, which is under research, will mark a real breakthrough.

For now, all the states in the first phase of the use of gasohol, except Maharashtra and Uttar Pradesh, have asked for more time to implement the fuel switch. Even so, reports from Maharashtra indicate that not all petrol pump owners have gasohol ready to pump.

(Inter Press Service)

 
Jan 21, 2003



 

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