changeadminAs per the information provided by Mr Suresh Gopi, Minister of State in the Ministry of Petroleum & Natural Gas in the parliament, the government has not decided to increase ethanol blending beyond 20%.
The National Policy on Biofuels – 2018, as amended in 2022, inter-alia advanced the target of 20% ethanol blending in petrol to Ethanol Supply Year (ESY) 2025-26 from 2030.
India has taken rapid strides in the biofuel economy, the public sector Oil Marketing Companies (OMCs) achieved the target of 10% ethanol blending in petrol in June 2022 i.e. five months ahead of the target during ESY 2021-22.
Further, ethanol blending increased to 12.06% in ESY 2022-23, 14.60% in ESY 2023-24 and 17.98% in ESY 2024-25 up to February 28th 2025.
According to the Roadmap for Ethanol Blending in India 2020-25, prepared by an inter-ministerial committee, using 20% ethanol-blended petrol (E20) results in marginal reduction in fuel efficiency for four-wheelers designed for E10 and calibrated for E20.
The Society of Indian Automobile Manufacturers (SIAM) informed the committee that with engine modifications, the efficiency loss due to blended fuel can be reduced. The committee report also highlighted that no major issues were observed in vehicle performance, wear of engine components, or engine oil deterioration with E20 fuel.
The National Policy on Biofuels permits the use of food grains during the surplus phase as declared by the National Biofuel Coordination Committee.
This Policy also promotes and encourages the use of feedstock such as corn, cassava, rotten potatoes, damaged food grains like broken rice, food grains unfit for human consumption, maize, sugarcane juice and molasses, and agriculture residues (Rice straw, cotton stalk, corn cobs, sawdust, bagasse etc.).
The extent of utilization of individual feedstock for ethanol production varies annually, influenced by factors such as availability, costs, economic feasibility, market demand, and policy incentives. Any diversion of sugarcane juice, its by-products, maize etc. for ethanol production is carefully calibrated in consultation with relevant stakeholders.
Further, the Government, since 2014, has taken several measures to encourage farmers and ethanol producers to scale up production under the Ethanol Blended Petrol (EBP) Programme.
This includes expanding feedstock for ethanol production, implementing an administered price mechanism for the procurement of ethanol under the EBP Programme, lowering the GST rate to 5% on ethanol for the EBP Programme, amending the Industries (Development and Regulation) Act to facilitate intrastate and interstate movement of ethanol, simplifying the ethanol procurement process by Public Sector Oil Marketing Companies (OMCs), and advancing the target for 20% ethanol blending in petrol to the Ethanol Supply Year (ESY) 2025-26 from 2030.
Additionally, during 2018-22, the Government introduced various Ethanol Interest Subvention Schemes (EISS) for ethanol production from molasses and grains to establish ethanol plants. Long Term Offtake Agreements (LTOAs) were also signed by OMCs with Dedicated Ethanol Plants (DEPs).
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