**Summary:**
Minister of Petroleum and Natural Gas, Shri Hardeep Singh Puri, announced the successful and accelerated implementation of India's Ethanol Blended Petrol (EBP) program. Ethanol blending, which was at 1.53% in 2014, reached 10% in 2022, ahead of schedule. The original target of 20% blending (E20) by 2030 was achieved in the current Ethanol Supply Year (ESY), advanced from the initial 2025 target. This achievement was attributed to policy reforms including guaranteed ethanol pricing, allowing multiple feedstocks, and expanding distillation capacity. The Minister refuted claims of engine failures related to E20 fuel, citing Brazil's long-term use of E27 without issues.
The transition to E20 is underway, supported by policies, industry readiness, and public acceptance. Benefits of E20 include reduced greenhouse gas emissions, improved air quality, enhanced engine performance, and foreign exchange savings of over ₹1.4 lakh crore. 2G ethanol refineries are converting agricultural residues into ethanol, addressing pollution and increasing farmer income. Maize-based ethanol production has grown from 0 in 2021-22 to 42 this year.
Indian automobile manufacturers are developing E85-compatible vehicles, and the country is progressing towards higher ethanol blends (E25, E27, E30) with BIS standards and fiscal incentives. Ethanol procurement has generated ₹1.21 lakh crore in income for farmers, reduced crude imports by 238.68 lakh metric tons, and saved ₹1.40 lakh crore in foreign exchange over the past 11 years.
Regarding Sustainable Aviation Fuel (SAF), the Ministry is collaborating with oil marketing companies, airlines, and technology partners to develop and scale up SAF. A blending mandate has been initiated, targeting 1% blending for international flights by 2027, increasing to 2% by 2028, with further scaling as supply stabilizes. The Indian Oil Corporation Ltd. Refinery in Panipat is producing SAF from used cooking oil.
The announcements were made on August 8, 2025, by PIB Delhi.
Key Entities Referenced
Hardeep Singh Puri: Minister of Petroleum and Natural Gas of India.
Ethanol Blended Petrol EBP programme: A program by the Indian government to blend ethanol with petrol.
Narendra Modi: Prime Minister of India.
E20: A blend of petrol with 20% ethanol.
Ethanol Supply Year ESY: The period for ethanol supply and related activities.
Panipat, Haryana: Location of a 2G ethanol refinery converting agricultural residues into ethanol.
Numaligarh, Assam: Location of a 2G ethanol refinery converting agricultural residues into ethanol.
Sustainable Aviation Fuel SAF: Aviation fuel produced from sustainable sources.
Ministry of Petroleum & Natural Gas
India’s Ethanol Journey is Unstoppable: Shri
Hardeep Singh Puri
Posted On: 08 AUG 2025 6:55PM by PIB Delhi
Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, today said that “India’s ethanol journey is
unstoppable,” while participating in a Fireside Chat Session on the sidelines of the Pioneer Biofuels 360
Summit.
Responding to a question on the success of the Ethanol Blended Petrol (EBP) programme, the Minister
highlighted that ethanol blending gained serious momentum only after 2014, when Prime Minister Narendra
Modi assumed office. In 2014, ethanol blending was merely 1.53%. By 2022, India achieved 10% blending,
five months ahead of schedule. The original target of 20% blending (E20) by 2030 was advanced to 2025 and
has already been achieved in the current Ethanol Supply Year (ESY). This success, the Minister noted, was
made possible through sustained policy reforms such as guaranteed pricing for ethanol, allowing multiple
feedstocks, and rapidly expanding distillation capacity across the country.
Dispelling misinformation and false narratives surrounding ethanol-blended fuel, Shri Puri emphasized that
there has not been a single case of engine failure or breakdown reported since E20 became a base fuel over
the last 10 months. Citing Brazil’s example, he said the country has run on E27 for years without any issues.
Some lobbies with vested interests are actively attempting to create confusion and derail India’s ethanol
revolution. However, such efforts will not succeed. The E20 transition is already firmly underway, backed by
strong policy support, industry readiness, and public acceptance—and there is no turning back.
Elaborating on the benefits of E20, the Minister said it results into reduction in greenhouse gas emissions,
improves air quality, enhances engine performance, and has already led to over ₹1.4 lakh crore in foreign
exchange savings. He pointed out that 2G ethanol refineries in Panipat and Numaligarh are converting
agricultural residues like parali and bamboo into ethanol, providing a win-win solution for clean fuel,
pollution control, and farmer income. He further highlighted the remarkable growth of maize-basedethanol—from 0% in 2021–22 to 42% this year—calling it a transformational shift.
On the issue of Flex-Fuel Vehicles (FFVs), Shri Puri said that the Indian automobile industry has already
demonstrated its capability. Indian OEMs have begun rolling out prototypes for E85-compatible vehicles.
Continuous consultations have been held with the Society of Indian Automobile Manufacturers (SIAM) and
other major auto manufacturers, and the direction is clear—progressively moving towards higher ethanol
blends. The Ethanol Blending Roadmap (2020–25) has laid a strong foundation, and the successful rollout of
E20—five years ahead of target—demonstrates both industry readiness and consumer acceptance. The
country will now gradually scale towards E25, E27, and E30 in a phased, calibrated manner with the support
of BIS standards and fiscal incentives.
The Minister stressed that ethanol blending is not just about mixing fuel—it is about empowering Annadatas
by turning them into Urjadatas., reducing crude imports, saving foreign exchange, creating green jobs, and
honouring India’s climate commitments. Over the past 11 years, ethanol procurement has enabled ₹1.21 lakh
crore income to farmers, reduced crude imports by 238.68 lakh metric tons, and saved ₹1.40 lakh crore in
foreign exchange.
Speaking about India’s efforts in Sustainable Aviation Fuel (SAF), Shri Puri said the Ministry is working
closely with oil marketing companies, airlines, and global technology partners to develop and scale up SAF.
Like ethanol, India will adopt a phased approach to SAF adoption. A blending mandate has already been
initiated, with a target of 1% blending for international flights by 2027, increasing to 2% by 2028, and scaling
further as supply stabilizes. He also cited the example of the Indian Oil Corporation Ltd. Refinery in Panipat,
which is using used cooking oil to produce SAF—showcasing India’s innovative and sustainable pathway
forward.
*****MN
(Release ID: 2154355)