**Executive Summary**
This document is an answer to an unstarred question in the Lok Sabha concerning the promotion of ethanol production in India. It outlines the government's measures to boost ethanol production in order to meet targets under the Ethanol Blended Petroleum (EBP) Programme, specifically addressing the promotion of 3G ethanol production and technologies to increase conversion efficiency. Key deadlines and dates include references to Ethanol Supply Year (ESY) 2024-25 and 2025-26.
**Key Points / Main Content**
* **Measures to Increase Ethanol Production:**
* Expanded feedstock for ethanol production.
* Administered price mechanism for ethanol procurement under EBP.
* Reduced GST rate to 5% for ethanol for EBP.
* Introduced Ethanol Interest Subvention Schemes (EISS) during 2018-22.
* Dedicated subvention scheme for Cooperative Sugar Mills.
* Signed 233 Long Term Offtake Agreements (LTOAs).
* Allocated 72 Lakh Metric Tonne (LMT) of surplus Food Corporation of India (FCI) rice for ethanol production for ESY 2025-26.
* Allowed diversion of 40 LMT of sugar for ethanol production for ESY 2024-25.
* Permitted unrestricted production of ethanol from various molasses and sugarcane juice/syrup for ESY 2025-26.
* Notified the “Pradhan Mantri JI-VAN Yojana” for financial assistance to Advanced Biofuels projects.
* Focused on multimodal transportation of ethanol and increased storage capacity.
* **Promotion of Advanced Biofuels (including 3G Ethanol):**
* Amended the PM JI-VAN Yojana in 2024 to incorporate Advanced Biofuels, including Third Generation (3G) Ethanol, providing financial support.
* Envisages setting up of approximately 12 commercial Advanced Biofuel Projects and about 10 demonstration scale Advanced Biofuel Projects.
* **Technology Development and Support:**
* Indian Oil Corporation Limited (IOCL) has established a 3G ethanol plant in Panipat, Haryana.
* Department of Biotechnology (DBT) supports research and innovation projects to enhance ethanol conversion efficiency from lignocellulosic biomass.
* IOCL R&D has developed a 2G ethanol technology with integrated enzyme production and Bharat Petroleum Corporation Limited (BPCL) has developed and successfully demonstrated an in-house 2G ethanol process. Hindustan Petroleum Corporation Limited (HPCL) has taken initiative to develop 2G technology
**Impact Analysis**
**Oil Marketing Companies (OMCs) and Dedicated Ethanol Plants**
* **Impact:** Involved in Long Term Offtake Agreements (LTOAs) to secure ethanol supply.
* **Action Required:** Fulfill agreements and ensure ethanol off-take as per LTOAs.
**Cooperative Sugar Mills**
* **Impact:** Opportunity to convert distilleries into multi-feedstock plants for ethanol production.
* **Action Required:** Avail of the dedicated subvention scheme to convert distilleries.
**Advanced Biofuel Project Developers**
* **Impact:** Eligible for financial assistance under the PM JI-VAN Yojana.
* **Action Required:** Apply for financial assistance and set up Advanced Biofuel projects.
**Technology Providers**
* **Impact:** Opportunity to demonstrate the viability of their novel technologies for advanced biofuel production.
* **Action Required:** Participate in Demonstration projects to showcase technology.
**Food Corporation of India (FCI)**
* **Impact:** Responsible for allocating surplus rice for ethanol production.
* **Action Required:** Allocate 72 LMT of surplus rice for ESY 2025-26.
**Ethanol Producers**
* **Impact:** Ability to increase ethanol production.
* **Action Required:** Take advantage of the measures listed to increase production.
**Department of Biotechnology (DBT)**
* **Impact:** Expected to support research and innovation projects
* **Action Required:** Support research and innovation projects to enhance ethanol conversion efficiency from lignocellulosic biomass.
**Indian Oil Corporation Limited (IOCL)**
* **Impact:** In charge of a 3G ethanol plant in Panipat, Haryana.
* **Action Required:** Continue to stabilize the 3G ethanol plant in Panipat, Haryana.
**Bharat Petroleum Corporation Limited (BPCL)**
* **Impact:** Responsible for for developing and successfully demonstrated an in-house 2G ethanol process
* **Action Required:** Enhance 2G ethanol process
**Hindustan Petroleum Corporation Limited (HPCL)**
* **Impact:** Took the initiative to develop 2G technology
* **Action Required:** Take Initiative to develop 2G technology.
Key Entities Referenced
Ethanol Blended Petroleum (EBP) Programme: A government initiative to promote the blending of ethanol with petrol, aimed at achieving a 20% blending rate.
Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana: A government scheme providing financial assistance for setting up advanced biofuels projects utilizing lignocellulosic biomass.
Ministry of Petroleum & Natural Gas: The government ministry responsible for overseeing the promotion of ethanol production and the EBP Programme.
Panipat, Haryana: Location of an Indian Oil Corporation Limited (IOCL) 3G ethanol plant.
Department of Biotechnology (DBT): Supports research and innovation projects focused on developing technologies to enhance the conversion efficiency of ethanol made from lignocellulosic biomass.
LOK SABHA
UNSTARRED QUESTION No. 2223
TO BE ANSWERED ON 12th February, 2026
PROMOTION OF ETHANOL PRODUCTION
2223. SHRI RAMASAHAYAM RAGHURAM REDDY:
पे(cid:7069)ोिलयम और (cid:7079)ाकृितक गैस म(cid:7074)ं ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) the steps undertaken by the Government to boost ethanol production in order to meet its
targets under the Ethanol Blended Petroleum (EBP) Programme;
(b) whether the Government has a blueprint for promotion of 3G ethanol production, if so,
the details thereof; and
(c) whether the Government is working on developing technologies to increase the
conversion efficiency of ethanol produced from lignocellulosic biomass and if so, the
details thereof?
ANSWER
पे(cid:7069)ोिलयम और (cid:7079)ाकृितक गैस म(cid:7074)ं ालय म(cid:7286) रा(cid:6996)यम(cid:7074)ं ी
((cid:7088)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS
(SHRI SURESH GOPI)
(a): Government have taken several measures to increase ethanol production in the country to
achieve 20% blending of ethanol in petrol, 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,
allocation of 72 Lakh Metric Tonne (LMT) of surplus Food Corporation of India (FCI) rice for
ethanol production for the 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 and increasing ethanol
storage capacity along with other allied infrastructure for handling of higher blends of ethanol.
(b) & (c): With an objective to broaden the scope of the scheme to incorporate Advanced
Biofuels including Third Generation (3G) Ethanol, the Government has amended the PM JI-
VAN Yojana in 2024 to provide financial support for setting up Advanced Biofuels projects in
the country using lignocellulosic biomass and other renewable feedstock. The PM JI-VAN
scheme envisages setting up of about 12 commercial Advanced Biofuel Projects and about 10demonstration scale Advanced Biofuel Projects. The purpose of supporting Demonstration
projects is to enthuse Technology providers to display viability & performance of their novel
technologies thereby indigenization of advanced biofuel technologies and to address, inter-alia,
the challenge of higher conversion process cost of lignocellulosic biomass to ethanol as
compared to the conventional molasses to ethanol process. Indian Oil Corporation Limited
(IOCL) has established a 3G ethanol plant of 128 Kilo litre per day capacity at Panipat, Haryana,
using refinery off-gas as feedstock, which is currently under stabilization.
Department of Biotechnology (DBT) has informed that they have supported research and
innovation projects focused on developing technologies to enhance the conversion efficiency of
ethanol made from lignocellulosic biomass by providing advanced biocatalytic solutions and
indigenous bioprocesses. DBT through Biotechnology Industry Research Assistance Council
(BIRAC) has supported setting up of a 10 tonnes lignocellulosic biomass per day processing
plant to produce about 3,000 litres of ethanol per day and the development of a novel cocktail of
cellulosic enzymes.
IOCL R&D has also developed a 2G ethanol technology with integrated enzyme
production and mechanically completed a 10 tonnes per day demonstration plant at Panipat,
integrated with onsite enzyme production, utilizing biomass feedstocks such as rice straw, wheat
straw, and bagasse. Bharat Petroleum Corporation Limited (BPCL) has developed and
successfully demonstrated an in-house 2G ethanol process using lignocellulosic biomass.
Hindustan Petroleum Corporation Limited (HPCL) has taken initiative to develop 2G technology
and in-house enzyme development to improve overall viability of the process.
*****