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India Achieves 20% Ethanol Blending in Petrol Five Years Ahead of Schedule | Current Affairs | Vision IAS
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India Achieves 20% Ethanol Blending in Petrol Five Years Ahead of Schedule

Posted 24 Jul 2025

2 min read

Ethanol (C2H5OH) or ethyl alcohol is a renewable fuel made from various plant materials collectively known as "biomass” (e.g., sugarcane, maize, wheat, and other crops with high starch content).

  • It is naturally produced by the fermentation of sugars by yeasts or via petrochemical processes such as ethylene hydration.

Ethanol Blended Petrol (EBP) Programme

  • Genesis: Launched in 2003 to promote blending of ethanol in petrol.
  • Target: National Policy on Biofuels (2018), as amended in 2022, advanced the target of 20% blending of ethanol in petrol to 2025-26 from 2030.
    • The Policy allowed use of: Sugarcane Juice, Sugar Beet, Cassava, Damaged food grains, Rotten Potatoes, unfit for human consumption for ethanol production.
    • The policy allowed: Surplus food grains to be used for ethanol production and blending with petrol, ensuring fair prices for farmers during surplus phases.
  • Achievements:
    • Ethanol production: Surged from 38 crore litres in 2014 to over 660 crore litres in 2025.
    • Saved ₹1.36 lakh crore in forex; Paid approx. ₹1.2 lakh crore to farmers; Cut approx. 700 lakh tonnes of CO₂ emissions.

Measures taken to boost Ethanol Blending Programme

  • Interest Subvention Scheme to improve and increase ethanol production capacity in the Country (2018).
  • GST on Ethanol lowered from 18% to 5% (2018).
  • New sources, sugar and sugar syrup, introduced for ethanol production at fixed remunerative price (2019).
  • Industries (Development and Regulation) or IDR Act amended in 2016 to clarify on the roles of Central and State Government for continuous supply of ethanol to be blended with petrol.
  • Approval of National Biofuels Coordination Committee (NBCC) to utilize maize for ethanol production (2020). 
  • Tags :
  • Ethanol Blended Petrol (EBP) Programme
  • Cassava
  • Ethanol Blended Petrol
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