KATHMANDU:- The government has implemented a new policy aimed at introducing ethanol-blended petrol. An order to this effect was published in the National Gazette on Friday.
According to the policy, the Nepal Oil Corporation (NOC) must mix up to 10 percent ethanol in a liter of petrol, depending on availability. The policy aims to promote industries based on domestic raw materials, create employment opportunities, encourage the use of agricultural and biological resources, and reduce energy imports.
The order states that the mixing ratio may increase or decrease as required.
Molasses, Napier grass, agricultural waste, biological materials, straw, maize stalks, wheat straw, cassava, rotten grains, marcha (yeast), and certain chemicals are listed as raw materials for producing ethanol, which will be used as a fuel additive.
The use of edible food grains for ethanol production is prohibited. Raw materials used for ethanol production must comply with existing laws, and the ethanol produced must be supplied to the NOC.
Similarly, the policy requires producers to implement environmentally friendly measures during ethanol production, comply with established standards, and conduct quality pathology tests in their own laboratories.
The price of ethanol will be determined by the government before the start of each fiscal year, based on recommendations from the Recommendation Committee. The approved price will come into effect from the first day of the fiscal year (Saun 1 in the Nepali calendar).
The NOC and ethanol-producing companies must sign agreements for the purchase and supply of ethanol. If any industry violates the agreement, the NOC will have the legal right to seek compensation.