Cabinet decisions today include an increase in the price of ethanol, an extension of the subsidy for P&K fertilizers, and a number of other measures
Wednesday, the government increased the prices of ethanol used for blending petroleum products, approved the subsidy for phosphatic and potassic fertilizers for the ongoing rabi season, and approved naming the new airport in Arunachal Pradesh.
Ethanol
The Union Cabinet has decided to increase the price of all three varieties of ethanol. A price increase has been announced for the supply year beginning December 2022 for ethanol extracted from sugarcane juice. The current price is Rs 63.45 per liter, and will increase to Rs 65.61 per liter in the supply year beginning December 2022.
It has been increased from Rs 46.66 per liter to Rs 49.41 per liter for ethanol produced using the C-heavy molasses route, and from Rs 59.08 per liter to Rs 60.73 per litre for ethanol produced using the B-heavy route.
Presently, 10 percent ethanol is blended into gasoline (10 percent ethanol, 90 percent petrol), and the government intends to double this quantity by 2024-25.
“We have been able to save about Rs 40,000 crore from forex outlays by blending 10 percent, as well as benefiting the farmers,” Petroleum Minister Hardeep Singh Puri stated during a press conference.
Fertilizer
Additionally, the cabinet approved a subsidy of Rs 51,875 crore for phosphatic and potassium fertilizers for the second half of 2022-23 as part of efforts to provide affordable soil nutrients to farmers. According to an official statement, a subsidy of Rs 98.02 per kg will be provided for nitrogen (N), Rs 66.93 per kg for phosphorus (P), Rs 23.65 per kg for potash (K) and Rs 6.12 per kg for sulphur (S).
Considering the steep increase in the international price of fertilisers and inputs such as urea, DAP, MOP and sulphur, the government has decided to absorb the increase by increasing subsidies on P&K fertilisers, including DAP.
Subsidies will be released to fertiliser companies at approved rates in order to make fertilisers available to farmers at reasonable prices, the statement stated.
Airport
Additionally, the Cabinet approved the proposal to name the new airport in Arunachal Pradesh “Donyi Polo Airport, Itanagar”.
At a cost of Rs 646 crore, the Airports Authority of India (AAI) is developing a greenfield airport at Hollongi in Itanagar. The central government approved the development of the airport ‘in principle’ in January 2019.
According to an official statement, the Donyi Polo Airport, Itanagar, symbolizes the people’s reverence for the sun (Donyi) and the moon (Polo) as symbols of the state’s rich cultural heritage.
MoU with Denmark
Moreover, Cabinet has approved a Memorandum of Understanding (MoU) with Denmark on cooperation in the area of water resources development and management.
The MoU covers ease of information access, integrated and smart water resource management, aquifer mapping, groundwater modeling, monitoring and recharge, efficient and sustainable water supply for households, and reducing non-revenue water and energy consumption.
During Prime Minister Narendra Modi’s visit to Denmark on May 3, the Ministry of Jal Shakti and the Danish Ministry of the Environment signed a Letter of Intent.
(With PTI inputs)
