New Delhi: Union Minister for Road Transport and Highways Nitin Gadkari announced on Thursday that sugar mills will soon be allowed to set up ethanol pumps, making the fuel more easily available to consumers, reports CNBC TV18. This step is part of the government’s plan to increase ethanol production and promote its use across the country.
Speaking at the Sugar-Ethanol & Bioenergy India Conference 2025, Gadkari shared the government’s goal of increasing the sugar industry’s contribution to the agricultural economy. He said the sector’s share in the country’s agricultural GDP could grow from the current 1-1.5% to 3% with better planning and innovation. He highlighted ethanol as a key part of this strategy, benefiting both the economy and the environment.
The government has also moved up its ethanol blending target, aiming to achieve 20% ethanol blending in petrol by 2025-26 instead of 2030. Petroleum Minister Hardeep Singh Puri recently said that ethanol blending had already crossed 19% by December 2024.
To support ethanol production, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a price increase for ethanol bought by oil companies in the 2024-25 supply year.
The price of ethanol made from C-heavy molasses has been raised by ₹1.39 per litre, bringing it to ₹57.97 per litre. The decision is aimed at ensuring a steady supply of ethanol and helping meet the government’s blending target.
Gadkari also spoke about new ways ethanol can be used beyond just blending with petrol. He said plans are in place to use ethanol in road construction by developing a bitumen substitute. He also mentioned government support for CNG-powered tractors made by sugar mills and restated its commitment to flex-fuel vehicles, which can run entirely on ethanol.
As part of India’s push for clean energy, the minister talked about efforts to produce hydrogen from Bio-Compressed Biogas (CBG) and develop bio-aviation fuel. These steps aim to make the sugar industry an important part of India’s shift towards cleaner and more sustainable energy.
Gadkari also spoke about the need to modernise sugarcane farming to improve both production and profits for farmers. He encouraged greater use of drones and nano fertilisers to help increase efficiency and make farming more advanced.
With these measures, the government aims to expand ethanol use across different industries, reduce dependence on imported fuels, and strengthen India’s energy and agricultural sectors.
