Why in news?
The Union government announced that India has achieved 20 % ethanol blending in petrol (E20) ahead of its original 2030 deadline. The milestone is part of the Ethanol Blended Petrol Programme aimed at reducing oil imports and cutting emissions.
What is the programme?
Launched in 2003 and expanded after 2014, the EBP programme mandates blending a certain percentage of ethanol — an alcohol made from biomass like sugarcane, molasses and damaged grains — into petrol. The Ministry of Petroleum and Natural Gas coordinates with the Ministries of Agriculture and Food Processing to procure ethanol from mills and allocate it to oil marketing companies.
Targets and achievements
- Original target: 20 % blending by 2030 under the National Policy on Biofuels 2018.
- Achievement: India reached 20 % blending by the Ethanol Supply Year 2024‑25, five years ahead of schedule, after climbing from 1.5 % in 2014 to 10 % in 2022.
Benefits
- Energy security: Ethanol blending reduces crude oil imports, saving foreign exchange and shielding the economy from oil price volatility.
- Farmers’ income: Farmers earn additional revenue from sales of sugarcane and surplus grains for ethanol production.
- Environmental gains: Ethanol burns cleaner than pure petrol, lowering greenhouse‑gas and particulate emissions. It also opens avenues for producing Sustainable Aviation Fuel.
Challenges and outlook
Scaling up ethanol supply further will require expanding distillation capacity, ensuring feedstock availability without undermining food security and adapting vehicle engines to higher ethanol blends. Developing advanced biofuels from crop residues and bamboo could diversify raw materials. Continued reforms in pricing and procurement policies will be crucial.