India can save up to USD 6.12 billion from its oil import bill if it achieves the targeted 20%  ethanol mix in transportation fuel by 2021-22, according to a university study published last week.

The study has also projected that achieving the target will bring about a reduction in carbon dioxide emission by up to 10.41 million tonne by 2021-22.

According to the report, India's current domestic ethanol capacity stands at approximately 2,240 million litres annually and the country is expected to achieve an average blending rate of about 5% this year.
If demand from domestic chemical and potable alcohol industry is also factored in, the study projects a deficit in the supply of ethanol to the tune of 822 million litres. For 2016-2017, emand from the chemical and potable alcohol industries is projected to be around 1,252 million litres and 1,030 million litres respectively.