India’s Biofuel Revolution Gains Momentum: Government Advances Ethanol Blending Targets, Achieves Milestones in ESY 2021-22 and 2022-23.

The National Policy of Biofuels-2018 notified on 4th June, 2018 provided indicative targets of 20 percent ethanol blending in petrol and 5 percent biodiesel blending in diesel by 2030.Encouraged by the past 7 years performance under the Ethanol Blending Programme, Government decided to advance the targets of 20 percent ethanol blending in petrol from 2030 to Ethanol Supply Year (ESY) 2025-26. The Roadmap for Ethanol Blending in India 2020-25,prepared by an inter-Ministerial Committee, estimated ethanol requirement of 1016 crore litres to achieve 20 percent  blending targets in ESY 2025-26.

The current ethanol production capacity of 1364 crore litre is spread across most of the states of the country including in the ethanol surplus states of Uttar Pradesh, Maharastra & Karnataka. This capacity is sufficient to produce the ethanol required to meet the blending targets.

In line with the aforesaid Roadmap, Oil Marketing Companies have achieved 10 percent ethanol blending during ESY 2021-22 and 12 percent during ESY 2022-23.

The Government, since 2014, has taken several measures to meet the ethanol blending targets which includes expansion of feedstock for production of ethanol; administered price mechanism for procurement of ethanol under the Ethanol Blended Petrol (EBP) Programme; lowered GST rate to 5 percent on ethanol for EBP Programme; amendment in Industries (Development & Regulation) Act for free movement of ethanol across states for blending; interest subvention scheme for enhancement and augmentation of ethanol production capacity in the country; regular floating of Expression of Interest (EoI) by Public Sector Oil Marketing Companies (OMCs) for procurement of ethanol.

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