The government aims to increase ethanol blending in petrol beyond twenty percent starting in 2030. The National Policy on Biofuels – 2018, amended in 2022, advanced the 20% ethanol blending target from 2030 to the Ethanol Supply Year (ESY) 2025-26. Public Sector Oil Marketing Companies (OMCs) reached the 10% ethanol blending milestone in June 2022, five months ahead of schedule. Ethanol blending has steadily increased, reaching:
- 12.06% in ESY 2022-23
- 14.60% in ESY 2023-24
- 17.98% in ESY 2024-25 (as of February 28, 2025)
Despite this progress, the government has not yet decided on increasing ethanol blending beyond 20%.
Impact on Fuel Efficiency and Engine Performance
The Roadmap for Ethanol Blending in India 2020-25, prepared by an inter-ministerial committee, indicates that using E20 petrol (20% ethanol-blended fuel) leads to a marginal reduction in fuel efficiency for four-wheelers designed for E10 fuel.
Expanding Feedstock for Ethanol Production
The National Policy on Biofuels allows the use of food grains during surplus phases, as determined by the National Biofuel Coordination Committee. It also promotes various feedstocks, including:
- Corn, cassava, and sugarcane juice
- Rotten potatoes and damaged food grains (e.g., broken rice, maize)
- Agricultural residues (rice straw, cotton stalks, corn cobs, sawdust, and bagasse)
The amount of each feedstock used for ethanol production varies yearly, depending on availability, costs, market demand, and policy incentives. Any diversion of sugarcane juice, maize, or other feedstocks for ethanol production is carefully regulated with input from industry stakeholders.
Government Measures to Boost Ethanol Production
Since 2014, the government has introduced several initiatives to support farmers and ethanol producers under the Ethanol Blended Petrol (EBP) Programme. Key measures include:
- Expanding the range of feedstocks for ethanol production
- Setting an administered price mechanism for ethanol procurement
- Reducing GST on ethanol to 5% under the EBP Programme
- Amending the Industries (Development and Regulation) Act to simplify ethanol transportation across states
- Streamlining the ethanol procurement process for Public Sector OMCs
- Advancing the 20% ethanol blending target from 2030 to ESY 2025-26
As reported by news24online.com, with these policies, India is steadily progressing toward a more sustainable and self-reliant fuel ecosystem, reducing dependence on fossil fuels while boosting the rural economy.
