Government Initiatives to Boost Ethanol Blending Beyond 20%

21 Mar 2025 CW Team

Steady Progress in Ethanol Blending The Public Sector Oil Marketing Companies (OMCs) surpassed the 10% ethanol blending target in June 2022, five months ahead of schedule. Ethanol blending has steadily increased over the years: 12.06% in ESY 2022-23 14.60% in ESY 2023-24 17.98% in ESY 2024-25 (as of 28th February 2025). As of now, no decision has been taken to increase ethanol blending beyond 20%.

Impact of E20 on Vehicle Performance According to the Roadmap for Ethanol Blending in India (2020-25), using E20 fuel leads to a marginal reduction in fuel efficiency for vehicles originally designed for E10 fuel. However, the Society of Indian Automobile Manufacturers (SIAM) has noted that engine modifications can mitigate this efficiency loss. Testing has shown no major issues with engine performance, component wear, or oil degradation when using E20 fuel.

Expanding Feedstock for Ethanol Production The National Biofuel Coordination Committee permits the use of surplus food grains for ethanol production. Key feedstock sources include:

Sugarcane derivatives: Molasses, sugarcane juice Food grains: Maize, broken rice, surplus grains Agricultural residues: Rice straw, cotton stalk, bagasse, corn cobs, sawdust The utilisation of specific feedstocks is calibrated annually based on availability, cost, market demand, and policy incentives.

Government Measures to Promote Ethanol Production: Since 2014, the government has implemented several initiatives to scale up ethanol production under the Ethanol Blended Petrol (EBP) Programme: Expansion of feedstock sources for ethanol production. Administered pricing mechanism for ethanol procurement. Reduction of GST on ethanol to 5% under the EBP Programme. Eased interstate and intrastate ethanol movement through amendments to the Industries (Development and Regulation) Act. Simplified procurement process by OMCs. Advancement of the 20% ethanol blending target from 2030 to ESY 2025-26. Introduction of Ethanol Interest Subvention Schemes (EISS) (2018-22) to promote ethanol production from both molasses and grains. Long-Term Offtake Agreements (LTOAs) between OMCs and Dedicated Ethanol Plants (DEPs).

These measures are designed to encourage ethanol producers and farmers while ensuring a sustainable transition to higher ethanol blending levels in India's fuel mix.

This update was provided by Minister of State for Petroleum and Natural Gas, Shri Suresh Gopi, in a written response to the Lok Sabha today.

The Indian government has made significant strides in enhancing ethanol blending in petrol, advancing the target for 20% ethanol blending (E20) to Ethanol Supply Year (ESY) 2025-26—five years earlier than originally planned under the National Policy on Biofuels – 2018 (amended in 2022). Steady Progress in Ethanol Blending The Public Sector Oil Marketing Companies (OMCs) surpassed the 10% ethanol blending target in June 2022, five months ahead of schedule. Ethanol blending has steadily increased over the years: 12.06% in ESY 2022-23 14.60% in ESY 2023-24 17.98% in ESY 2024-25 (as of 28th February 2025). As of now, no decision has been taken to increase ethanol blending beyond 20%. Impact of E20 on Vehicle Performance According to the Roadmap for Ethanol Blending in India (2020-25), using E20 fuel leads to a marginal reduction in fuel efficiency for vehicles originally designed for E10 fuel. However, the Society of Indian Automobile Manufacturers (SIAM) has noted that engine modifications can mitigate this efficiency loss. Testing has shown no major issues with engine performance, component wear, or oil degradation when using E20 fuel. Expanding Feedstock for Ethanol Production The National Biofuel Coordination Committee permits the use of surplus food grains for ethanol production. Key feedstock sources include: Sugarcane derivatives: Molasses, sugarcane juice Food grains: Maize, broken rice, surplus grains Agricultural residues: Rice straw, cotton stalk, bagasse, corn cobs, sawdust The utilisation of specific feedstocks is calibrated annually based on availability, cost, market demand, and policy incentives. Government Measures to Promote Ethanol Production: Since 2014, the government has implemented several initiatives to scale up ethanol production under the Ethanol Blended Petrol (EBP) Programme: Expansion of feedstock sources for ethanol production. Administered pricing mechanism for ethanol procurement. Reduction of GST on ethanol to 5% under the EBP Programme. Eased interstate and intrastate ethanol movement through amendments to the Industries (Development and Regulation) Act. Simplified procurement process by OMCs. Advancement of the 20% ethanol blending target from 2030 to ESY 2025-26. Introduction of Ethanol Interest Subvention Schemes (EISS) (2018-22) to promote ethanol production from both molasses and grains. Long-Term Offtake Agreements (LTOAs) between OMCs and Dedicated Ethanol Plants (DEPs). These measures are designed to encourage ethanol producers and farmers while ensuring a sustainable transition to higher ethanol blending levels in India's fuel mix. This update was provided by Minister of State for Petroleum and Natural Gas, Shri Suresh Gopi, in a written response to the Lok Sabha today.

Infrastructure Transport

06 Aug 2026

Surya Roshni delivers customised lighting for NCRTC RRTS stations

Surya Roshni has supplied customised indoor lighting solutions for 18 elevated stations on the National Capital Region Transport Corporation's (NCRTC) Rapid Rail Transit System (RRTS), strengthening its presence in India's infrastructure lighting segment.The project involved the design and deployment of lighting systems for platforms, concourses, foot overbridges (FOBs) and back-of-house (BOH) areas. According to the company, the luminaires were developed specifically to meet NCRTC's design, operational and performance requirements rather than using standard products.Surya introduced two custo..

Real Estate

06 Aug 2026

Hilton debuts Tapestry Collection brand in Vietnam

Hilton has opened NHAAN Resort & Spa Hoi An, Tapestry Collection by Hilton, marking the debut of the Tapestry Collection brand in Vietnam and expanding its lifestyle hospitality portfolio in Southeast Asia.Located along the Co Co River in Cam Thanh village, the 174-key resort provides access to Hoi An Ancient Town, Cua Dai Beach and the Cam Thanh Nipa Forest. The property has been designed by Vietnamese architect Vo Trong Nghia, incorporating biophilic architecture, locally sourced materials and riverfront landscapes.The resort offers a mix of guest rooms and suites, including family-frien..

Building Material

06 Aug 2026

Electrent expands lithium energy storage system portfolio

Electrent Energy has expanded its lithium-based energy storage portfolio with the launch of the ESS 850 and ESS 1050, targeting compact and maintenance-free power backup solutions for Indian homes.The new systems integrate a Home UPS and a LiFePO4 lithium battery into a single unit, extending the company's product range following the launch of its ESS 1350 and ESS 2500 models.Designed for apartments and smaller homes, the ESS 850 provides up to 1 hour 15 minutes of backup, while the ESS 1050 offers up to 1 hour 45 minutes on a typical 400 W household load. The systems can power essential appli..