Summary:
The National Policy on Biofuels - 2018, revised in 2022, brought forward the target of achieving 20% ethanol blending in petrol from 2030 to the Ethanol Supply Year (ESY) FY26. Public Sector Oil Marketing Companies (OMCs) successfully attained 10% ethanol blending in June 2022, five months ahead of the ESY FY22 target. Ethanol blending continued its upward trend, reaching 12.06% in ESY FY23, 14.60% in ESY FY24 and 17.98% in ESY FY25 as of February 28, 2025. However, no official decision has been taken to increase blending levels beyond 20%. An interministerial committee’s Roadmap for Ethanol Blending in India 2020-25 indicated that E20 petrol (20% ethanol-blended petrol) results in a slight reduction in fuel efficiency for E10-calibrated fourwheelers, but this can be mitigated through engine hardware modifications.
To ensure ethanol availability, the National Biofuel Coordination Committee permits the use of surplus food grains for ethanol production. Key feedstocks include maize, sugarcane juice, molasses, broken rice and agricultural residues. The Ethanol Blended Petrol (EBP) Programme, introduced in 2014, offers support to ethanol producers through subsidised pricing, a reduced Goods and Services Tax (GST) rate of 5% and regulatory reforms to facilitate inter-state ethanol transportation. Additionally, the government has implemented Ethanol Interest Subvention Schemes (EISS) and established Long-Term Off take Agreements (LTOAs) to promote ethanol production from both molasses and grains. This update was shared by the Minister of State for Petroleum & Natural Gas, Mr. Suresh Gopi, in a written response in the Lok Sabha.
Source: IBEF
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