scorecardresearch
Follow Us:
Wednesday, December 01, 2021

Niti Aayog to set up Methanol Economy Fund

The Aayog is in discussion with companies such as Volvo and Tata to produce buses running on methanol.

By: ENS Economic Bureau | New Delhi |
December 20, 2017 1:58:46 am
Niti Aayog, methanol economy, methanol as fuel Niti Aayog plans to move a Cabinet note soon on the methanol economy and the plans to set up production plants. (Representational Image)

Niti Aayog plans to set up a Methanol Economy Fund worth Rs 4,000-5,000 crore to promote production and use of the clean fuel. The government think is aiming at generation of the fuel by converting high ash content coal into methanol and such a plant is expected to be set up by Coal India.

“We are going to use methanol fuel, which is cheaper, safer and pollution free. Our priority is to set up methanol production plants using coal and stranded gas assets,” Niti Aayog Member VK Saraswat said on Tuesday. In India methanol can be produced at Rs 16-21 per litre, he said in a press briefing.

Methanol can be used as an energy producing fuel, transportation fuel and cooking fuel, cutting down India’s oil import bill by an estimated 20 per cent over the next few years, he said. Niti Aayog plans to move a Cabinet note soon on the methanol economy and the plans to set up production plants. It expects that two plans can be commissioned in the next 3-4 years.

Saraswat said that unlike CNG, using methanol as a transportation fuel would require minimal alteration in the vehicles. China is the world’s largest producer of methanol, he added. The Aayog is also working on converting certain diesel-powered rail engines to work on methanol. Plans are underway to ensure that boats and ships used in the inland waterways initiative are also run on methanol.

The Aayog is in discussion with companies such as Volvo and Tata to produce buses running on methanol.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
Advertisement
Advertisement
Advertisement
Advertisement