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

    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
    Watch News Today
    Subscribe for Premium Features