Even if the government will implement it from January 1, 2060, 21 years and 18 days have passed but so far it has been stuck in the policy guidelines. Due to the high import of petrol, the trade deficit has increased. The concept of ethanol is to reduce it, but Nepal should be clear about what to make it from.
On October 24, 2060, the government made a decision - 'To develop it as an environment-friendly fuel by adding mandatory 10 percent ethanol to the gasoline used in vehicles running throughout Nepal from January 1, 2060.'
The purpose of this decision was to increase the use of indigenous materials to make ethanol and reduce the import of petrol. Accordingly, the Ministry of Industry, Commerce and Supply also published a notice in the gazette on 29 November 2060.
Even if the government mandated the use of ethanol in petrol from January 1, 2060, it has reached 21 years and 18 days. But the government agency is still stuck in making policies and guidelines. The government also brought the issue of ethanol blending in the policy and program of the financial year 2071/72. It mentioned adopting the method of mixing ethanol with petroleum products.
Not only that, the National Planning Commission made a necessary policy to produce biofuel from 2070 to 73. In 2073, Bio Energy Strategy 2073 was released. But the implementing agency has not yet taken a concrete decision on ethanol blending. Lately, the oil corporation has heated up. Using the authority given by sub-rule (14) of rule 22 of the rules of the corporation, the board of directors of the corporation has issued 'Regulation 2081 regarding ethanol mixture in petrol'. The
regulation covers topics such as reducing excessive dependence on mineral fuels, developing alternative energy sources within the country through the corporation itself or through indigenous entrepreneurs, increasing the use of ethanol and minimizing the negative impact on the environment from the use of mineral fuels. Although the board of directors of the corporation has issued regulations, the corporation itself is confused about the purchase, price and what to make of it. As a result, although the purpose is beneficial, there is confusion in the implementation. There is no problem in mixing ethanol with petrol, but how to buy it. How to determine the price of ethanol and what to make ethanol from, said an official of the corporation's board of directors. But how much production do we have? Which one has more production will be done from there. But there is no benefit in making ethanol by importing it.' Ethanol is also made from food grains in India. But he says that it is not possible with food in Nepal. The trade deficit increased when the import of petrol was high, the concept of ethanol is to reduce it. But in Nepal, we should be clear about what we are going to make it from,' said the official, 'comparatively, the price of ethanol is higher, so the price should be determined by the government.' Even though they say that it is necessary for the country, they are avoiding it due to the fear of controversy. Ethanol has been discussed in the past, it is also essential. During the tenure of the outgoing executive director Umesh Thani, there was a lot of discussion about this. At one stage, there was a discussion and a study was done," said an official of the corporation, "but the unnecessary pressure remained the same. There is no problem that comes from the decision of the Council of Ministers. But the employees are afraid to get trapped under the unnecessary pressure of the ministry. The official said that he is still very willing to invest in ethanol. A group of non-resident Nepalis has also discussed with the corporation about setting up an ethanol plant. But no decision has been made on domestic production and prices.
How to set the price, laws and procedures are needed for that. To begin with, we also needed the assurance of domestic production," said the official. "It is not just mixed with gasoline used in one city, it is needed all over the country." To mix ethanol in gasoline, 99.9 percent purity is required. It is said to start from 1/2 percent in Nepal. But that official claims that internal production and quality assurance is necessary.
According to the Customs Department, petrol worth 32 billion 14 crores has been imported in the 6 months of the current financial year. In the last financial year, the import was 68 billion 10 million. It is the understanding of the government that if some percentage of ethanol is added to the petrol, the losses will be reduced to some extent. Accordingly, he is emphasizing on ethanol. But experts say that the assurance of indigenous production is necessary.
A committee has been formed under the coordination of Shivram Pokharel, joint secretary of the latest supply ministry, after getting involved in the ethanol mixture. The committee, which has stockholders of all agencies, will decide the procedure for determining the price. Ethanol is very important to reduce losses. The reason for stopping now is the pricing issue. The ministry is trying to create a mechanism for that," said Chandika Prasad Bhatt, the executive director of the corporation. "Ethanol can be made from internal raw materials, other than food (sweet potato). In places where there is more production, it is also produced from rice and corn.'
can be started with one-two percent in the initial stage, said Bhatt. He said that if ethanol can be made from indigenous products, the income of farmers will also increase. Bhatt says that the study shows that the use of ethanol does not reduce the quality of petrol and does not cause any damage to the engine of the vehicle.
The main issue now is how to determine the price. The price is not determined by the corporation, but by the government," he said. "Since it is relatively expensive, there are discounts such as VAT and excise duty to promote domestic production. Now it depends on the government's policy. At present, the corporation has been paying customs duty of Rs 62 per liter of petrol to the government. According to the corporation, ethanol can be made cheaper even by reducing the customs duty.
