India is on track to achieve its set target of ethanol blending with petrol as it has achieved the benchmark figure of 8.1% in 2020-21, up from 1.5% in 2013-14.
The ethanol blending in 2019-20 was 5 per cent and increase in the supply of the ethanol across the country has helped in raising blending. The assurance of purchase of the commodity at the price fixed by the government and interest subsidy to promote ethanol production has helped in an increase in the production of ethanol.
India is importing 85% oil to meet domestic needs and is aiming to increase the share of Biofuels to cut the spending on oil imports. Increasing 10 per cent ethanol blending with petrol will help in bringing down oil imports.
