Executive Summary:
This document presents the Ministry of Petroleum and Natural Gas's response to questions regarding the Ethanol Blended Petrol (EBP) Programme. It details the current ethanol blending percentage across states, the program's targets, and government actions to ensure feedstock availability. The key target is achieving 20% ethanol blending by Ethanol Supply Year (ESY) 2025-26.
Key Points / Main Content:
* **Ethanol Blending Targets:**
* The target of 20% ethanol blending in petrol was advanced from 2030 to ESY 2025-26.
* The average ethanol blending achieved by Public Sector Oil Marketing Companies (OMCs) was 18.93% as of June 30, 2025, during ESY 2024-25.
* Ethanol blending reached 19.92% in June 2025.
* State-wise ethanol blending targets are not set.
* **Government Steps for Feedstock Availability:**
* Expansion of feedstock for ethanol production, as per the National Policy on Biofuels, amended in 2022.
* Development of Maize Clusters around ethanol plants by the Department of Agriculture and Farmers Welfare (DAFW).
* Project by ICAR-Indian Institute of Maize Research (IIMR) to enhance maize production in catchment areas of ethanol industries.
* Approval for 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 allowed for ESY 2024-25.
* **Support for Ethanol Production:**
* Administered price mechanism for ethanol procurement under the EBP Programme.
* Lowered GST rate to 5% for ethanol for the EBP Programme.
* Ethanol Interest Subvention Schemes (EISS) during 2018-22 for ethanol production from molasses and grains.
* Subvention scheme for Cooperative Sugar Mills to convert existing sugarcane-based distilleries into multifeedstock plants (notified on March 6, 2025).
* Long Term Offtake Agreements (LTOAs) between OMCs and Dedicated Ethanol Plants.
* Pradhan Mantri JIVAN Yojana (amended in 2024) for financial assistance for setting up Advanced Biofuels projects.
* Multimodal transportation of ethanol and increased ethanol storage capacity.
Impact Analysis:
* **Public Sector Oil Marketing Companies (OMCs):**
* *Impact:* Expected to achieve and maintain the ethanol blending targets, enter into LTOAs, and manage increased ethanol storage and transportation.
* *Action Required:* Implement strategies to reach the 20% blending target by ESY 2025-26, engage in LTOAs, and enhance infrastructure for ethanol handling.
* **Ethanol Producers:**
* *Impact:* Benefit from government support through administered pricing, GST reduction, interest subvention schemes, and long-term offtake agreements.
* *Action Required:* Increase ethanol production to meet the blending targets, utilize available government schemes, and establish partnerships with OMCs.
* **Farmers:**
* *Impact:* Opportunity to increase income through maize and sugarcane production, supported by government initiatives like the Maize Cluster development and allocation of surplus FCI rice.
* *Action Required:* Participate in the Maize Cluster programs, enhance maize production, and supply surplus rice/sugar for ethanol production.
* **Cooperative Sugar Mills:**
* *Impact:* Financial assistance available to convert sugarcane-based distilleries into multifeedstock plants for ethanol production.
* *Action Required:* Apply for the government subvention scheme and convert distilleries to multifeedstock plants to increase ethanol production capacity.
* **Consumers:**
* *Impact:* Indirectly benefit from reduced dependence on fossil fuels and potential environmental benefits associated with increased ethanol blending.
* *Action Required:* No direct action required.
Key Entities Referenced
Ethanol Blended Petrol EBP Programme: A government initiative to promote the blending of ethanol with petrol, aiming to reduce reliance on fossil fuels and promote biofuels.
National Policy on Biofuels 2018: A government policy framework, amended in 2022, to promote the production and use of biofuels in India.
Ethanol Supply Year ESY 2025-26: The period designated for achieving the 20% ethanol blending target.
Department of Agriculture and Farmers Welfare DAFW: A department of the government responsible for agricultural development and farmers' welfare, involved in developing Maize Clusters around ethanol plants.
Indian Council of Agricultural ResearchIndian Institute of Maize Research IIMR: An organization involved in research related to maize production, aimed at enhancing maize production in areas near ethanol industries.
Food Corporation of India FCI: A government organization responsible for ensuring food security, allocating surplus rice for ethanol production.
Pradhan Mantri JIVAN Jaiv Indhan Vatavaran Anukool fasal awashesh Nivaran Yojana 2019: A government scheme promoting advanced biofuels projects using lignocellulosic biomass and other renewable feedstock.
Andhra Pradesh: A state in India where the percentage of ethanol blending in petrol is specified.
LOK SABHA
UNSTARRED QUESTION No.1885
TO BE ANSWERED ON 31st July, 2025
TARGETS OF ETHANOL BLENDING PROGRAMME
1885. DR. M P ABDUSSAMAD SAMADANI:
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 current percentage of ethanol blending in petrol across the country, State-wise;
(b) the original and revised targets set under the Ethanol Blended Petrol (EBP) Programme;
(c) the steps taken by the Government to ensure availability of feedstock for sustained ethanol
production; and
(d) whether there are any challenges in achieving uniform blending across States and if so, the
details thereof?
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)यम(cid:287)ं ी
((cid:302)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS
(SHRI SURESH GOPI)
(a) to (d): The National Policy on Biofuels – 2018, as amended in 2022, inter-alia advanced the
target of 20% blending of Ethanol in petrol from 2030 to Ethanol Supply Year (ESY) 2025-26.
During the ongoing ESY 2024–25, Public Sector Oil Marketing Companies (OMCs) have achieved
an average ethanol blending of 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 current
percentage of ethanol blending in petrol, State/UT-wise, for ESY 2024–25 (as on 30.06.2025) are at
Annexure.
In order to ensure availability of feedstock for ethanol production to achieve 20% Ethanol blending
target by the Ethanol Supply Year (ESY) 2025-26, the Government has taken several steps
which inter-alia includes (i) expansion of feedstock for Ethanol production as per the National Policy
on Biofuels, as amended in 2022, (ii) development of Maize Cluster around ethanol plants by
Department of Agriculture and Farmers Welfare (DAFW) and a Project by ICAR-Indian Institute of
Maize Research (IIMR) titled “Enhancement of maize production in catchment areas of ethanol
industries” to increase the production of maize in catchment area of grain based distilleries, (iii)
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 up to 30.06.2026, and (iv) diversion of 40 LMT of sugar for
ethanol production allowed for the ESY 2024-25.
Further, to support ethanol production in the country, Government introduced administered price
mechanism for Ethanol procurement under the Ethanol Blended Petrol (EBP) Programme, loweredGST rate to 5% for Ethanol for EBP Programme, introduced various Ethanol Interest Subvention
Schemes (EISS) during 2018-22 for Ethanol production from molasses as well as grains, a dedicated
subvention scheme for Cooperative Sugar Mills to convert existing sugarcane-based distilleries into
multi-feedstock plants for ethanol production has been notified by the Government on 06.03.2025,
Long Term Offtake Agreements (LTOAs) between OMCs and Dedicated Ethanol Plants, notified
the “Pradhan Mantri JI-VAN (Jaiv Indhan - Vatavaran Anukool fasal awashesh Nivaran) Yojana”
2019, amended in 2024, 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.
*****ANNEXURE
ANNEXURE REFERRED TO IN REPLY OF PART (a) to (d) OF THE LOK SABHA
UNSTARRED QUESTION NO. 1885 DUE FOR ANSWER ON 31.07.2025 ON “TARGETS
OF ETHANOL BLENDING PROGRAMME” ASKED BY DR. M P ABDUSSAMAD
SAMADANI.
Current percentage of ethanol blending in petrol, State/UT-wise, for ESY 2024-25 (as on
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%
*****