Executive Summary:
This document details the progress of the Ethanol Blended Petrol (EBP) program in India as of June 30, 2025. It outlines the current average percentage of ethanol blending in petrol, state-wise performance, and government measures to promote decentralized ethanol production while ensuring food security and water availability. The information was provided in response to Lok Sabha Unstarred Question No. 837, answered on July 24, 2025.
Key Points / Main Content:
Ethanol Blending Performance:
* The average ethanol blending achieved by Public Sector Oil Marketing Companies (OMCs) was 18.36% as of March 31, 2025, increasing to 18.93% as of June 30, 2025.
* Ethanol blending reached 19.92% in June 2025.
* State-wise ethanol blending performance trends for ESY 2024-25 as of June 30, 2025, are provided in the Annexure.
* Statewise ethanol blending targets are not set
Ethanol Production and Support:
* The government has taken measures since 2014 to ensure equitable access to ethanol production across regions.
* Ethanol production plants are set up by entrepreneurs/companies/cooperative societies based on techno-economic viability.
* OMCs have signed Long Term Offtake Agreements (LTOAs) with Dedicated Ethanol Plants (DEPs).
* Interest Subvention Schemes were approved during 2018-22 to enhance ethanol distillation capacities.
* A subvention scheme for Cooperative Sugar Mills to convert sugarcane-based distilleries into multifeedstock plants was notified on March 6, 2025.
Food Security and Water Availability:
* The National Policy on Biofuels, amended in 2022, promotes the use of damaged food grains, surplus food grains, and agriculture residues for ethanol production.
* The policy encourages the use of corn, cassava, rotten potatoes, maize, sugarcane juice, and molasses as feedstock.
* The utilization of individual feedstock is influenced by availability, costs, economic feasibility, market demand, and policy incentives.
* Diversion of sugarcane juice, byproducts, maize, and other food/feed crops for ethanol production is carefully calibrated.
* Pradhan Mantri JIVAN Yojana supports advanced biofuel projects using lignocellulosic biomass and renewable feedstocks.
* Environmental Clearance (EC) for ethanol production units requires compliance with water-use norms, prohibiting groundwater use for ethanol distilleries, including in Telangana.
Impact Analysis:
Government:
* Impact: Responsible for promoting ethanol blending, ensuring food security and water availability, and providing financial support for ethanol production.
* Action Required: Continue monitoring ethanol blending progress, calibrating feedstock utilization, and enforcing water-use norms for ethanol distilleries.
Oil Marketing Companies (OMCs):
* Impact: Involved in achieving ethanol blending targets and signing Long Term Offtake Agreements (LTOAs) with ethanol plants.
* Action Required: Continue achieving blending targets and maintaining LTOAs with DEPs.
Entrepreneurs/Companies/Cooperative Societies:
* Impact: Responsible for setting up and operating ethanol production plants based on techno-economic viability.
* Action Required: Assess feedstock availability, develop investment plans, and comply with environmental regulations.
Farmers/Agricultural Sector:
* Impact: Potential suppliers of feedstock for ethanol production, including sugarcane, rice, maize, and agricultural residues.
* Action Required: Understand the demand for different feedstocks and adapt agricultural practices to meet the needs of ethanol production while ensuring sustainable water usage.
State Governments/Union Territories:
* Impact: Involved in achieving ethanol blending performance within their region.
* Action Required: Monitor and support ethanol blending initiatives and provide the necessary infrastructure.
Key Entities Referenced
Ethanol Blended Petrol EBP Programme: A government program promoting the blending of ethanol with petrol.
Ethanol Supply Year ESY 202425: The period for ethanol supply, specifically referring to the year 2024-2025.
Public Sector Oil Marketing Companies OMCs: Government-owned companies involved in the marketing and distribution of oil products, playing a role in ethanol procurement and blending.
Long Term Offtake Agreements LTOAs: Agreements between Oil Marketing Companies (OMCs) and Dedicated Ethanol Plants (DEPs) for the purchase of ethanol.
Dedicated Ethanol Plants DEPs: Facilities specifically dedicated to the production of ethanol for blending purposes.
National Policy on Biofuels, 2022: A government policy amended in 2022 promoting the use of biofuels, including ethanol, and regulating feedstock utilization.
National Biofuel Coordination Committee NBCC: A committee that declares surplus food grains that can be used for biofuel production.
Pradhan Mantri JIVAN Jaiv IndhanVatavaran Anukool fasal awashesh Nivaran Yojana: A government scheme providing financial support to advance biofuel projects using lignocellulosic biomass and other renewable feedstocks.
Telangana: A state in India specifically mentioned in the context of water stress and ethanol production.
LOK SABHA
UNSTARRED QUESTION No.837
TO BE ANSWERED ON 24thJuly, 2025
ETHANOL BLENDING IN PETROL
837. SHRI ARVIND DHARMAPURI:
प(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 details of the current average percentage of ethanol blending in petrol achieved
nationwide as on March 31, 2025 along with the State-wise performance trends;
(b) whether the Government has mapped surplus sugarcane, rice and maize zones for
decentralised ethanol production units and if so, the details thereof; and
(c) the details of the steps taken to ensure that ethanol procurement does not distort food
security and rural water availability particularly in water stressed regions of India especially
Telangana?
ANSWER
प(cid:282)े ो(cid:871)लयम और (cid:292)ाकृ(cid:467)तक गैस म(cid:287)ं ालय म(cid:581) रा(cid:207)य म(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 the blending of ethanol with petrol under the Ethanol
Blended Petrol (EBP) Programme. During the ongoing Ethanol Supply Year (ESY) 2024–25,
Public Sector Oil Marketing Companies (OMCs) have achieved an average ethanol blending of
18.36% as on 31.03.2025 and has gone up to 18.93% as on 30.06.2025. In the month of June
2025, Ethanol blending of 19.92% has been achieved. State-wise ethanol blending targets are not
set. The State/UT-wise ethanol blending performance trends for ESY 2024–25 (as on 30.06.2025)
are at Annexure.
(b): Government, since 2014, has taken several measures to ensure equitable access to ethanol
production opportunities across various regions of the country. These ethanol production plants
are set up by entrepreneurs/companies/co-operative societies, etc. depending upon the techno-
economic viability of the project as per their investment plans which inter-alia includes
assessment of feedstock availability at viable cost. To meet the requirement of ethanol for
blending in petrol, Oil Marketing Companies (OMCs) have signed Long Term Offtake
Agreements (LTOAs) with Dedicated Ethanol Plants (DEPs). To encourage entrepreneurs to
enhance and add new ethanol distillation capacities throughout the country the Government,
during 2018-22, approved ‘in-principle’ Interest Subvention Schemes. Further, 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 has been
notified by the Government on 06.03.2025.(c): The National Policy on Biofuels, as amended in 2022, which extends across the country
including the State of Telangana, promotes use of, inter-alia, damaged food grains like broken
rice, food grains unfit for human consumption, food grains during surplus phase as declared by
the National Biofuel Coordination Committee (NBCC), and agriculture residues (Rice straw,
cotton stalk, corn cobs, saw dust, bagasse etc.). This Policy also promotes and encourages use of
feedstock such as corn, cassava, rotten potatoes, maize, sugarcane juice & molasses. The extent of
utilization of individual feedstock for ethanol production varies annually, influenced by factors
such as availability, costs, economic feasibility, market demand, and policy incentives. Any
diversion of sugarcane juice, its by-products, maize, and other food/feed crops for ethanol
production is carefully calibrated in consultation with relevant stakeholders. Further, to
incentivize the use of non-food biomass for second generation ethanol production, Government
has launched Pradhan Mantri JI-VAN (Jaiv Indhan-Vatavaran Anukool fasal awashesh Nivaran)
Yojana to provide financial support to advance bio-fuel projects using lignocellulosic biomass and
other renewable feedstocks. The grant of Environmental Clearance (EC) to ethanol production
units throughout the country including in Telangana require compliance of water-use norms, as
use of groundwater for ethanol distilleries is prohibited.
*****ANNEXURE
ANNEXURE REFERRED TO IN REPLY OF PART (a) OF THE LOK SABHA
UNSTARRED QUESTION NO. 837 DUE FOR ANSWER ON 24.07.2025 ON “ETHANOL
BLENDING IN PETROL” ASKED BY SHRI ARVIND DHARMAPURI.
Ethanol blending performance trends, States/UTs -wise, during ESY 2024-25 as of 30.06.2025
STATE / UNION TERRITORY % Blending (Sales)
Andaman & Nicobar 6.26%
Andhra Pradesh 19.00%
Arunachal Pradesh 18.87%
Assam 18.96%
Bihar 19.02%
Chandigarh 19.04%
Chhattisgarh 16.96%
Dadra And Nagar Haveli And Daman & Diu 19.01%
Delhi 18.96%
Goa 16.15%
Gujarat 18.95%
Haryana 19.30%
Himachal Pradesh 19.26%
Jammu & Kashmir 18.84%
Jharkhand 18.79%
Karnataka 19.13%
Kerala 19.25%
Ladakh 16.17%
Lakshadweep 16.65%
Madhya Pradesh 19.09%
Maharashtra 18.84%
Manipur 18.17%
Meghalaya 18.96%
Mizoram 16.66%
Nagaland 19.03%
Odisha 19.08%
Pondicherry 19.18%
Punjab 19.23%
Rajasthan 18.98%
Sikkim 19.22%
Tamil Nadu 19.11%
Telangana 19.09%
Tripura 18.82%
Uttar Pradesh 18.81%
Uttarakhand 19.00%
West Bengal 19.28%
TOTAL 18.93%
*****