As India aims for a 20% ethanol blending rate by the end of the Ethanol Supply Year (ESY) 2025-26, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved revisions to the Pradhan Mantri JI-VAN Yojana, extending its duration until 2028-29. Ethanol blending in petrol had already reached 15.83% by July 2024, with the cumulative blending percentage exceeding 13% in the ongoing ESY 2023-24.

The revised scheme will now include advanced biofuels made from lignocellulosic feedstocks, such as agricultural and forestry residues, industrial waste, synthesis gas, and algae. The addition of "Bolt-on" plants and "Brownfield projects" is intended to make better use of existing infrastructure, enhancing viability and benefiting from operational experience.

Preference will be given to project proposals that incorporate new technologies and innovations, encouraging a diverse range of technological approaches and feedstock use. The scheme aims to provide fair income to farmers for agricultural residue, reduce environmental pollution, create local employment opportunities, and strengthen India?s energy self-sufficiency and security.

This initiative also supports the development of advanced biofuel technologies, promotes the Make in India mission, and aligns with India?s objective to achieve net-zero greenhouse gas emissions by 2070.

Public Sector Oil Marketing Companies (OMCs) have significantly increased ethanol blending with petrol, from 38 crore litres in ESY 2013-14 to over 500 crore litres in ESY 2022-23. To meet future blending targets, approximately 1,100 crore litres of ethanol will be required during ESY 2025-26, necessitating the installation of 1,750 crore litres of ethanol distillation capacity.

To further enhance ethanol production capacity, the government is also focusing on second-generation (2G) ethanol derived from surplus biomass, agricultural waste, and industrial waste.

The first 2G Ethanol Project under this scheme, initiated by Indian Oil Corporation Limited in Panipat, Haryana, was inaugurated by the Prime Minister on 10th August 2022. Additional 2G commercial projects by BPCL in Bargarh, Odisha, HPCL in Bathinda, Punjab, and NRL in Numaligarh, Assam are nearing completion, marking significant progress in strengthening India?s biofuel infrastructure under the expanded Pradhan Mantri JI-VAN Yojana.