BMC bids to curb pollution in city; ethanol not freely available now.
In an effort to curb pollution in the city, the Brihanmumbai municipal corporation (BMC) has decided to waive off octroi duty on ethanol, which is mainly used as a biofuel additive for motor fuel.
The move comes in the backdrop of the Union petroleum ministry’s directives to the civic body to waive off octroi on ethanol.
Ethanol, a type of alcohol found in alcoholic beverages, is commonly made from biomass such as corn or sugarcane. When added with motor fuel, it causes less pollution.
Ethanol fuel is widely used in Brazil and the United States.
According to the civic officials, the Centre has asked to mix 10 per cent of ethanol in motor fuel as a part of its policy of implementing eco-friendly measures.
However, it is not freely available in Mumbai as the civic body imposes seven per cent octroi on it.
In the recently held state pollution control board meeting, experts had raised objections against it.
Furthermore, the union petroleum ministry, at a meeting held on January 28, had asked the state government to ensure that the civic body takes necessary measures to increase the import of ethanol. The municipal corporation had received
collections of only Rs 15.68 lakh from the octroi on ethanol last year.
“As compared to these paltry collections, the environmental benefits of revoking the octroi duty on ethanol are much bigger,” said a senior civic official.
“Hence, civic chief Ajoy Mehta had talked about scrapping the octroi on ethanol while presenting budget for the year 2016-17. Accordingly the proposal has been tabled before the standing committee meeting for approval,” he further added.
By dropping octroi duty, crude oil companies can supply ethanol at cheaper rates and this will lead to increase in ethanol use.
With this, nearly six crore litres of additional ethanol will be supplied to the city.
Foreign exchange on import of crude oil can also be saved with the rise in ethanol use, said civic officials.
