Kathmandu. Minister for Industry, Commerce and Supplies Anil Kumar Sinha has said that 10 per cent blending of ethanol in petrol will help reduce the import of petrol and reduce trade deficit.

At a programme on ethanol blending policy, feasibility, challenge and implementation’ organised by Society of Economic Journalists Nepal (SEJON) here today, Minister Pun said import of petrol could be reduced by 130 million litres annually if it blended 10 per cent ethanol.

According to him, this will save billions of rupees of foreign currency and help improve the trade balance. Stating that ethanol blending is an important step towards energy security, Minister Sinha said that it will also have a positive impact on environment conservation. He said that the use of biofuels would help reduce carbon emissions from vehicles and reduce air pollution.

He expressed the belief that the policy would make the sugar industry dynamic and benefit the farmers as sugarcane and other agro-based raw materials are used for ethanol production. Minister Sinha is of the view that it will also contribute to increase domestic production, create employment opportunities and commercialize the agriculture sector.