Cabinet advances ethanol blending target of 20% in petrol to 2025-26

20 May 2022 CW Team

To reduce dependency on imported oil for satisfying the country's energy demands, the Cabinet authorised advancing the aim of blending 20% ethanol in gasoline by five years to 2025-26, as well as enabling new feedstocks for biofuel production.

According to media sources, the Cabinet, led by Prime Minister Narendra Modi, adopted the modifications to the National Policy on Biofuels during its meeting.

The significant change is to push back the deadline for blending 20% ethanol into gasoline (20% ethanol, 80% gasoline) from 2030 to 2025-26.

Currently, around 10% ethanol is incorporated into gasoline.

In addition, more feedstocks for the production of biofuels that can be doped with auto fuels have been approved.

It also encourages firms based in Special Economic Zones (SEZ)/ Export Oriented Units (EoUs) to produce biofuels in India as part of the Make in India initiative.

These measures would help India, which imports 85% of its oil, to reduce its dependency on international exports.

The Cabinet also authorised allowing licence for the export of biofuels in particular instances. The reforms would also encourage the development of indigenous technology, paving the path for the Make in India initiative and creating more jobs.

The current National Biofuels Policy was established in 2018. This amendment proposal would open the path for the Make in India initiative, resulting in a decrease in petroleum imports as more biofuels are produced.

Since many more feedstocks are being authorised for the manufacture of biofuels, this would promote the Atmanirbhar Bharat and provide momentum to Prime Minister Modi's aim of India becoming energy independent by 2047.

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