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

11 May 2026

Shivraj Chouhan Launches PMGSY IV and Announces Package for Madhya Pradesh

Union Minister Shivraj Singh Chouhan launched the Pradhan Mantri Gram Sadak Yojana (PMGSY) IV at Bhairunda in Sehore district during the 25 year celebrations and announced a development package for Madhya Pradesh. The programme was organised by the Union Ministry of Rural Development and attended by Chief Minister Dr Mohan Yadav, ministers of state, state ministers, legislators and senior officials from the centre and the state. The minister said the central government under the Prime Minister is committed to strengthening rural livelihoods through improved connectivity, housing and women's in..

Infrastructure Urban

11 May 2026

DMR Engineering Reports FY 25-26 Financial Results

DMR Engineering reported its half year results for the financial year ended 31 March 2026 and published full year figures on a standalone basis. Standalone revenue from operations decreased by 2.01 per cent year-over-year to Rs 102.58 million (mn), while profit after tax declined by 43.94 per cent to nine point five six mn, leaving a profit after tax margin of nine point zero five per cent. Earnings per share stood at Rs zero point nine two, a fall of 44.71 per cent year-over-year. The company attributed part of the decline to one-off provisioning for bad debts and additional financing charges..

Infrastructure Urban

11 May 2026

Atlanta Electricals Posts Strong FY26 Growth And Debt Free Finish

Atlanta Electricals reported audited consolidated results for the quarter and year ended 31 March 2026. The company recorded significant year-on-year revenue growth driven by capacity ramp-up at new facilities and higher utilisation at legacy plants. The announcement summarised operating improvements and strategic milestones achieved during the year. For Q4 the company reported revenue of Rs 7.48 bn and for FY26 revenue of Rs 18.52 bn, representing robust growth versus the prior year. EBITDA in Q4 was Rs. 1.49 bn and Rs. 3.44 bn for the full year, with margins expanding to 20 per cent in the q..