India has successfully achieved the E20 blending milestone five years in advance. It is a major step towards energy security, reduced import dependence, and lower carbon emissions.
However, according to the stakeholders of this national programme, this is not the end of the journey. Munish Madan, MD of The Catalysts Group, a leading company in providing biotech solutions to ethanol producers, said that the next challenge is to create a clear, concrete, and long-term roadmap beyond E20, which is essential for both industry stability and national energy goals.
The industry’s readiness
He said that both sugar-based and grain-based industries have made significant investments in ethanol production over the past few years. “With current and upcoming projects, India already has sufficient ethanol production capacity to support E27 blending levels. Feedstock availability too is not a constraint; farmers and processors are well-positioned to support the expanded programme”, he added.
Madan said that without timely policy support, these investments are at risk. New ethanol plants, if unable to operate at optimal capacity due to a lack of clarity in blending targets, face the danger of becoming unviable, potentially leading to mounting NPAs in the banking system.
Policy gaps: Immediate action needed
To unlock the full potential of ethanol blending, Madan said that the Government must introduce a national biofuel policy beyond E20, which should highlight the following:
• Blending Targets: A staggered roadmap for E22, E25, and E27.
• Ethanol Pricing: A transparent formula for ethanol procurement pricing that factors in production costs, etc., which will ensure remunerative prices for the producers.
• Transportation & Taxation: Simplified interstate ethanol transport policies and lower taxation to remove bottlenecks in supply chains.
• Storage Infrastructure: OMCs must augment tankage and storage capacity to handle higher blends efficiently.
The company is a major player in the industrial enzymes segment with a key focus towards sugar, distillation and brewing industries.
