Why in news?
India achieved its target of blending 20 % ethanol (E20) with petrol in March 2025, five years ahead of schedule. The government now aims for E30 by 2030.
Background and milestones
- The Ethanol Blended Petrol (EBP) Programme began in 2003. The initial target was 10 % ethanol blending (E10), achieved by 2022.
- The National Policy on Biofuels 2018 accelerated the E20 target to 2025 and set a new goal of E30 by 2030.
- The government fixed remunerative ethanol prices, offered interest subsidies for new distilleries and reduced GST on ethanol from 18 % to 5 %. Long‑term offtake contracts assured suppliers of stable demand.
- Over 17,000 fuel stations supply E20 petrol. The Global Biofuels Alliance, launched by India, fosters cooperation on biofuels.
Benefits of ethanol blending
- Reduces dependence on imported oil, saving foreign exchange.
- Lowers greenhouse‑gas emissions and improves air quality when burnt in place of petrol.
- Provides additional income for farmers who supply feedstock such as sugarcane, maize and broken rice.
- Helps develop rural industries, including distilleries and biogas plants.
Concerns and challenges
- Technical issues: Ethanol absorbs moisture, which can cause corrosion and engine deposits. At E20 levels, cars may suffer 6–7 % lower mileage and two‑wheelers 3–4 %.
- Vehicle compatibility: Most existing motorcycles and three‑wheelers are designed for E10. Higher blends require flex‑fuel engines, which are not yet common.
- Cold start and evaporative emissions: Ethanol blends may cause starting problems in cold conditions and increase vapour emissions in hot weather.
- Feedstock supply: Heavy reliance on sugarcane and maize could threaten food security and water resources. Second‑generation ethanol from agricultural waste must be scaled up.
Way forward
- Develop clear engine certification standards for E20 and E30, with mileage‑linked tax rebates to offset efficiency loss.
- Introduce differentiated fuel pricing: cheaper ethanol blends for compatible vehicles, costlier pure petrol for older engines.
- Upgrade storage and dispensing infrastructure to handle higher ethanol content.
- Promote flex‑fuel vehicles and invest in second‑generation ethanol technologies that use agricultural residues instead of food crops.
With careful planning and technological investment, ethanol blending can reduce emissions and fuel imports while safeguarding food security.