The Ethanol Blended Petrol (EBP) Programme is yielding significant results, not only helping ethanol producers and farmers financially but also assisting the government in saving foreign exchange.
At the 12th CII Bioenergy Summit, “Fuelling the Future – Securing India’s Green Growth Goals,” Union Minister Hardeep Singh Puri interacted with a large gathering of CEOs, policymakers, academicians, researchers, diplomats, and associations, including representatives from key bioenergy-producing nations like the US, Brazil, and France, among others.
While addressing the Summit, he said, “Ethanol blending percentage increased from 1.53% in 2014 to 15% in 2024, buoyed by the success, we advanced the 20% target by 5 years to 2025 and are on track to achieve it. As a result of this India saved ₹1,06,072 crore in foreign exchange, paid ₹90,059 cr to farmers, substituted 181 Lakh MT of crude oil and lowered 544 Lakh MT of CO2 emissions between 2014 & August 2024.”
He also stated, “About 25% of the increase in energy demand is likely to come from India. How much of that increase are we able to fulfil with traditional fuels and how much through alternative fuels is what defines the future of our green transition under the dynamic leadership of PM Modi. We are poised to significantly augment India’s energy landscape Bioenergy will significantly contribute to India’s NetZero strategy through initiatives like ethanol blending, biodiesel, CBG, Sustainable Aviation Fuel, & waste-to-energy solutions.”
Ethanol production is increasing significantly in India due to the initiatives taken by the government.
Recently, Oil Marketing Companies (OMCs) invited tenders for the supply of 916 crore liters of denatured anhydrous ethanol for the Ethanol Supply Year (ESY) 2024-25. The response exceeded the required quantity of 916 crore liters, with over 970 crore liters of offers submitted by manufacturers across the country. The response from ethanol manufacturers is very encouraging, especially as the government has recently implemented various measures to boost ethanol production. The 20% ethanol blending target now seems achievable, having been advanced from 2030 to ESY 2025-26.
India’s ethanol production capacity has expanded significantly, now reaching 1,648 crore liters. The government is optimistic that this growing capacity will meet the country’s domestic ethanol needs.
To increase indigenous production of ethanol the Government since 2014 took multiple interventions like:-
–Re-introduction of administered price mechanism;
–Opening of alternate route for ethanol production;
–Amendment to Industries (Development & Regulation) Act, 1951 which legislates exclusive control of denatured ethanol by the Central Government for smooth movement of ethanol across the country;
–Reduction in Goods & Service Tax (GST) on ethanol meant for EBP Programme from 18% to 5%;
–Differential ethanol price based on raw material utilized for ethanol production;
Extension of EBP Programme to whole of India except islands of Andaman Nicobar and Lakshadweep wef 01st April, 2019;
–Interest Subvention Scheme for enhancement and augmentation of the ethanol production capacity by Department of Food and Public Distribution (DFPD);
–Publication of Long Term Policy on ethanol procurement
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