India Achieves 20% Ethanol Blending in Petrol Five Years Ahead of Schedule

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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).