The price of ethanol mixed in petrol is Rs. An increase of 1.5

(PTI) New delhi date. 10

The government has hiked the price of ethanol blended in petrol by Rs 1.5 per liter. The hike in ethanol prices will take effect in the marketing year 2021-2 starting December. It may be mentioned that at present 4% ethanol is blended in petrol which is targeted to increase to 20% by 205. This proportion will be increased to 10% next year.

India's bill for oil imports will fall as the amount of ethanol in petrol increases. It will also benefit sugarcane farmers and sugar mills. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi.

Giving details in this regard, Information and Broadcasting Minister Anurag Thakur said that since December 2021, the price of ethanol made from sugarcane juice has been increased from Rs 4.5 per liter to Rs 7.5.

Oil marketing companies like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) buy ethanol from sugar mills.

In another decision taken by the Cabinet, the government has approved Cotton Corporation of India (CCI) for a committed price support of Rs 15,606.5 crore for seven years from 2016-17 to 2020-21.

The Cabinet also approved reservation norms for flax packaging material. The decision to re-launch the Member of Parliament Local Area Development Scheme (MPLADS), which was discontinued due to Kovid-18, was also taken at a cabinet meeting held today. This scheme will be continued till 207-2.

Under this scheme, MPs will be allotted Rs 2.5 crore twice in a financial year, i.e. a total of Rs 5 crore for the entire year.