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 Urban

05 Nov 2025

TBO Tek Q2 Profit Climbs 12%, Revenue Surges 26% YoY

TBO Tek Limited one of the world’s largest travel distribution platforms, reported a solid performance for Q2 FY26 with a 26 per cent year-on-year increase in revenue to Rs 5.68 billion, reflecting broad-based growth and improving profitability.The company recorded a Gross Transaction Value (GTV) of Rs 8,901 crore, up 12 per cent YoY, driven by strong performance across Europe, MEA, and APAC regions. Adjusted EBITDA before acquisition-related costs stood at Rs 1.04 billion, up 16 per cent YoY, translating into an 18.32 per cent margin compared to 16.56 per cent in Q1 FY26. Profit after tax r..

Infrastructure Energy

05 Nov 2025

Northern Graphite, Rain Carbon Secure R&D Grant for Greener Battery Materials

Northern Graphite Corporation and Rain Carbon Canada Inc, a subsidiary of Rain Carbon Inc, have jointly received up to C$860,000 (€530,000) in funding under the Canada–Germany Collaborative Industrial Research and Development Programme to develop sustainable battery anode materials.The two-year, C$2.2 million project aims to transform natural graphite processing by-products into high-performance, battery-grade anode material (BAM). Supported by the National Research Council of Canada Industrial Research Assistance Programme (NRC IRAP) and Germany’s Federal Ministry for Economic Affairs a..

Infrastructure Urban

05 Nov 2025

Antony Waste Q2 Revenue Jumps 16%; Subsidiary Wins Rs 3,200 Cr WtE Projects

Antony Waste Handling Cell Limited (AWHCL), a leading player in India’s municipal solid waste management sector, announced a 16 per cent year-on-year increase in total operating revenue to Rs 2.33 billion for Q2 FY26. The growth was driven by higher waste volumes, escalated contracts, and strong operational execution.EBITDA rose 18 per cent to Rs 570 million, with margins steady at 21.6 per cent, while profit after tax stood at Rs 173 million, up 13 per cent YoY. Revenue from Municipal Solid Waste Collection and Transportation (MSW C&T) reached Rs 1.605 billion, and MSW Processing re..