Mumbai: India has decided to allow an ethanol-based ‘flex machine’, which has a vehicle that uses local agricultural products and not fossil fuels, and will launch a scheme in the next three months, said Union Minister Nitin Gadkari on Monday.
Gadkari said other countries in the world such as Brazil, the US and Canada have a flex machine powered by agricultural products and advising car makers such as BMW, Mercedes and Toyota to develop alternative vehicles.
The switch for ethanol produced locally will be beneficial for a country like India which depends on crude oil imports to turn on the transportation sector, he said, adding that it would also be less polluting and cost-effective.
One liter of ethanol comes between 60-62 per liter because of fighting more than Rs 100 paid for gasoline, the Minister said, acknowledged that the value of low ethanol calorals.
“In the US, Brazil and Canada, they have a Flex machine, so as the Minister of Transportation we will launch this Flex Machine facility to all consumers in this country,” said Gadkari at an event organized by the state-run Bank India.
“We will launch this scheme now and within three months we will start,” he added.
Gadkari said the government had begun to give permission to build 100 percent of ethanol gasoline pump and added that Prime Minister Narendra Modi had inaugurated two facilities like that in Pune, Maharashtra.
“We can make ethanol from the molasses of sugar cane juice and now the government gives permission to make ethanol from food grains from rice, corn and seeds,” he said, asking countries such as Tamil Nadu, Maharashtra, Take and Uttar Pradesh lead.
At present, India allows 20 percent ethanol-blending in fuel.
This country is burdened with excess stock of rice and wheat as well, Gadkari said, after marking hunger as one of the main challenges for the country.
He said Indian car makers including TV and Bajaj had developed two-wheeled vehicles to run exclusively on ethanol, ask their colleagues to develop their own models.
Speaking at the launch of the assistance initiative developed by the Bank for small businesses in Maharashtra, Gadkari said the bankers also needed to lead in identifying the technology disturbing the future and funding them at the right time.
Meanwhile, to increase the supply of credit to the small business segment, everything is important, Gadkari, which also holds a micro, small and medium enterprises portfolio, asks the industry to develop a strong ranking system where bankers can depend on loans.
Such a system, which will take input from the business balance sheet, GST payment, turnover etc., can help speed up credit for a decent business, Gadkari said.
He also asked the bank to support loans to fishermen who want to buy Cochin Dockshooks for more than Rs 1 Crore, which will allow the boat to enter deeper into the sea and increase catches.