**Executive Summary**
This document reports on the progress and measures related to the Ethanol Blended Petrol (EBP) Programme in India, as of December 4, 2025. It addresses the status of ethanol blending, steps to ensure feedstock availability, the impact of E20 fuel, and the establishment of ethanol plants, particularly in the Paschim Champaran district of Bihar. The target is to achieve 20% ethanol blending by Ethanol Supply Year (ESY) 2025-26.
**Key Points / Main Content**
* **Ethanol Blending Progress:**
* The average ethanol blending in petrol achieved 19.24% during ESY 2024-25, with 19.97% reached in October 2025.
* Ethanol blending in petrol has increased from 38 crore litres in ESY 2013-14 to more than 1000 crore litres in ESY 2024-25.
* **Measures for Feedstock and Infrastructure:**
* The government has expanded feedstock options and implemented price mechanisms for ethanol procurement.
* Reduced GST rate to 5% for ethanol used in the EBP Programme.
* Introduced Ethanol Interest Subvention Schemes (EISS) during 2018-22.
* Dedicated subvention scheme for Cooperative Sugar Mills to convert existing sugarcane-based distilleries into multi-feedstock plants for ethanol production.
* Signed 233 Long Term Offtake Agreements (LTOAs) between OMCs and Dedicated Ethanol Plants.
* Approved allocation of 52 Lakh Metric Tonne (LMT) of surplus Food Corporation of India (FCI) rice for ethanol production for ESY 2024-25 and ESY 2025-26.
* Diversion of 40 LMT of sugar for ethanol production for ESY 2024-25 and unrestricted production of ethanol from sugarcane juice/sugar syrup, B-Heavy Molasses as well as C-Heavy Molasses for ESY 2025-26.
* The “Pradhan Mantri JI-VAN Yojana” provides financial assistance for Advanced Biofuels projects.
* Multimodal transportation of ethanol to enhance availability of ethanol and increasing ethanol storage capacity along with other allied infrastructure for handling of higher blends of ethanol.
* **Impact of E20 Fuel:**
* E20 fuel results in a marginal reduction in fuel efficiency for four-wheelers designed for E10 but is calibrated for E20.
* The Society of Indian Automobile Manufacturers (SIAM) reported efficiency loss can be reduced with engine modifications.
* No negative impact on engine health due to blending of ethanol in petrol up to E20 was identified.
* Life cycle emissions study by NITI Aayog indicates that GHG emissions are reduced by 65% for sugarcane-based ethanol and 50% for maize-based ethanol compared to petrol.
* E-20 gives better acceleration, better ride quality, lowered carbon emissions by approximately 30% as compared to E10 fuel.
* Safety standards for E20 are well established through BIS specifications and Automotive Industry Standards.
* **Ethanol Plants in Bihar:**
* Bharat Petroleum Corporation Limited (BPCL) reported 19 registered ethanol plants (3100 KLPD) in Bihar with Public Sector OMCs.
* Three ethanol plants (360 KLPD) in Paschim Champaran can use sugarcane-based feedstocks.
* A 60 KLPD sugarcane-based ethanol plant of Hindustan Biofuels Limited (HBL) is also located in Paschim Champaran.
**Impact Analysis**
**Farmers**
*Impact:* The EBP Programme expedites payments to farmers, resulting in payments of over Rs. 1,36,300 crores from ESY 2014-15 up to October 2025.
*Action Required:* Farmers need to ensure their feedstock supply meets the demand for ethanol production, benefiting from the stable and growing ethanol market.
**Consumers**
*Impact:* Consumers benefit from reduced carbon emissions and better performance (acceleration, ride quality) with E20 fuel.
*Action Required:* Be aware of the benefits and specifications of E20 fuel.
**Automobile Manufacturers**
*Impact:* Need to design and calibrate vehicles for E20 fuel, addressing efficiency loss and ensuring compatibility with E20 fuel specifications.
*Action Required:* Manufacturers need to modify engine hardware and tuning to minimize efficiency loss with E20 and comply with safety standards.
**Oil Marketing Companies (OMCs)**
*Impact:* Responsible for selling ethanol-blended petrol and entering into long-term offtake agreements with dedicated ethanol plants.
*Action Required:* Ensure consistent availability of ethanol-blended petrol and adhere to safety and quality standards.
Key Entities Referenced
Ethanol Blended Petrol (EBP) Programme: A government initiative to promote the blending of ethanol with petrol, aiming to reduce emissions and dependence on crude oil.
Ministry of Petroleum & Natural Gas: The primary government body responsible for overseeing the policy and its implementation.
Roadmap for Ethanol Blending in India 2020-25: A policy document prepared by an inter-ministerial committee providing guidance on ethanol blending targets and related issues.
E20 fuel: Petrol blended with 20% ethanol, the target blend under the EBP programme, and the subject of impact assessments.
Paschim Champaran, Bihar: A district in Bihar, India, specifically mentioned regarding the establishment of ethanol plants due to favorable conditions.
LOK SABHA
UNSTARRED QUESTION No.722
TO BE ANSWERED ON 04th December, 2025
ETHANOL BLENDED PETROL PROGRAMME
722. SHRI MUKESHKUMAR CHANDRAKAANT DALAL:
DR. VINOD KUMAR BIND:
SHRI SHANKAR LALWANI:
SHRI SUKHJINDER SINGH RANDHAWA:
SHRI BASAVARAJ BOMMAI:
SHRI ARUN GOVIL:
SHRI PRADEEP KUMAR SINGH:
SHRI AMAR SHARADRAO KALE:
SHRI RAHUL SINGH LODHI:
DR. BHOLA SINGH:
SHRI SHIVMANGAL SINGH TOMAR:
SHRI BALWANT BASWANT WANKHADE:
SHRI MANOJ TIWARI:
SHRI PRATAP CHANDRA SARANGI:
SHRI SUNIL KUMAR:
SHRI ANIL FIROJIYA:
SMT. KAMALJEET SEHRAWAT:
SHRI ASHISH DUBEY:
DR. SANJAY JAISWAL:
SHRI TRIVENDRA SINGH RAWAT:
SHRI KHAGEN MURMU:
पे(cid:282)ो(cid:871)लयम और (cid:292)ाकृ(cid:467)तक गैस मं(cid:287)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) the progress made so far under the Ethanol Blended Petrol Programme and the current level of
ethanol blending in the country;
(b) the measures taken to ensure consistent availability of feedstock and infrastructure for ethanol
production;
(c) whether the Government has conducted any study to assess the impact of E20 fuel on vehicle
performance, efficiency and environmental sustainability, if so, the details thereof;
(d) the steps taken to ensure that the transition to higher ethanol blending benefit both farmers and
consumers and to maintain fuel quality standards for alleviating the concerns of the people; and
(e) whether the Government proposes to set up any ethanol plant in Paschim Champaran district of
Bihar which has four sugar mills, ample availability of raw materials, land and the presence of
all favourable conditions required for setting up of an ethanol plant and if so, the details
thereof?
ANSWER
पे(cid:282)ो(cid:871)लयम और (cid:292)ाकृ(cid:467)तक गैस मं(cid:287)ालय म(cid:581) रा(cid:207)य मं(cid:287)ी
((cid:302)ी सुरेश गोपी)MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS
(SHRI SURESH GOPI)
(a): The Government has been promoting blending of ethanol in petrol under the Ethanol Blended
Petrol (EBP) Programme wherein Public Sector Oil Marketing Companies (OMCs) sell ethanol
blended with petrol. Under Ethanol Blended Petrol (EBP) Programme, ethanol blending in petrol has
increased from 38 crore litres in Ethanol Supply Year (ESY) 2013-14 to more than 1000 crore litres
in ESY 2024-25, thereby achieving an average blending of 19.24% ethanol in Petrol during ESY
2024-25. During the month of October, 2025, Ethanol blending of 19.97% has been achieved.
(b): In order to ensure consistent availability of feedstock and infrastructure for ethanol production in
India to achieve 20% Ethanol blending target by the Ethanol Supply Year (ESY) 2025-26 under
Ethanol Blended Petrol (EBP) Programme, Government have taken several steps to promote ethanol
production in India which inter-alia includes expansion of feedstock for Ethanol production,
administered price mechanism for Ethanol procurement under the Ethanol Blended Petrol (EBP)
Programme, lowered GST rate to 5% for Ethanol for EBP Programme, introduction of various
Ethanol Interest Subvention Schemes (EISS) during 2018-22, a dedicated subvention scheme for
Cooperative Sugar Mills to convert existing sugarcane-based distilleries into multi-feedstock plants
for ethanol production from molasses as well as grains, signing of 233 Long Term Offtake
Agreements (LTOAs) between OMCs and Dedicated Ethanol Plants which has increased the
country’s annual ethanol distillation capacity to more than 1950 crore litres, approval by Government
for allocation of 52 Lakh Metric Tonne (LMT) of surplus Food Corporation of India (FCI) rice for
ethanol production, each for the ESY 2024-25 (from 1st November 2024 to 31st October 2025) and
ESY 2025-26, diversion of 40 LMT of sugar for ethanol production for the ESY 2024-25 and
unrestricted production of ethanol from sugarcane juice/sugar syrup, B-Heavy Molasses as well as C-
Heavy Molasses for ESY 2025-26, notified the “Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran
Anukool fasal awashesh Nivaran) Yojana” to provide financial assistance for setting up Advanced
Biofuels projects in the country using lignocellulosic biomass and other renewable feedstock,
multimodal transportation of ethanol to enhance availability of ethanol and increasing ethanol storage
capacity along with other allied infrastructure for handling of higher blends of ethanol.
(c) & (d): According to the Roadmap for Ethanol Blending in India 2020-25, prepared by an inter-
ministerial committee, using 20% ethanol-blended petrol (E20) results in marginal reduction in fuel
efficiency for four-wheelers designed for E10 and calibrated for E20. The Society of Indian
Automobile Manufacturers (SIAM) had informed the committee that with modifications in engine
hardware and tuning, the efficiency loss due to blended fuel can be reduced. The Roadmap for
Ethanol Blending in India 2020-25 has not identified any negative impact on engine health due to
blending of ethanol in petrol up to E20. A study on life cycle emissions of Ethanol done by NITI
Aayog has said that GHG emissions in case of use of sugarcane and maize based Ethanol are less by
65% and 50%, respectively than those of petrol.
The use of E-20 gives better acceleration, better ride quality and most importantly, lowered
carbon emissions by approximately 30% as compared to E10 fuel. Ethanol's higher-octane number
(~108.5 compared to petrol's 84.4) makes Ethanol-blended fuel à valuable alternative for higher-
octane requirements that is crucial for modern high-compression engines. Vehicles tuned for E20
deliver better acceleration which is a very important factor in city driving conditions. Additionally,
Ethanol's higher heat of vaporization reduces intake manifold temperatures, increasing air-fuel
mixture density and boosting volumetric efficiency. Further, E20 results in better anti knocking
properties and performance. Also, safety standards for E20 are well established through BIS
specifications and Automotive Industry Standards. In most parameters including drivability,
startability, metal compatibility, plastic compatibility, there are no issues.The concerns associated to the usage of E20 fuels have been duly addressed through
appropriate channels in line with this Ministry’s response issued through the PIB release dated
12.08.2025 and the Joint Press Release issued by the Society of Indian Automobile Manufacturers,
the Automotive Research Association of India, and the Federation of Indian Petroleum Industry on
30.08.2025.
EBP Programme has resulted in expeditious payment to farmers to a tune of over Rs.
1,36,300 crores from Ethanol Supply Year (ESY) 2014-15 up to October 2025, besides savings of
more than Rs. 1,55,000 crore of foreign exchange, net CO2 reduction of approximately 790 lakh
metric tonne and substitution of more than 260 lakh metric tonnes of crude oil.
(e) Bharat Petroleum Corporation Limited (BPCL) has informed that there are 19 ethanol plants
of capacity 3100 kilo litre per day (KLPD) located in the State of Bihar who are registered with
Public Sector OMCs for supply of denatured ethanol under the EBP Programme. Out of these, 3
ethanol plants of capacity 360 KLPD are situated in Paschim Champaran district and all of them can
utilize sugarcane-based feedstocks for ethanol production. Additionally, one more 60 KLPD capacity
sugarcane-based ethanol plant of Hindustan Biofuels Limited (HBL – wholly owned subsidiary of
Hindustan Petroleum Corporation Limited) is also located in Paschim Champaran.
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