Ethanol Milestone: India Reaches 20% Blending Target Five Year Early Ahead Of 2030 Goal | Business News

Last Updated:July 27, 2025, 08:38 IST

India met its goal of blending 20% ethanol with petrol five years early, ISMA announced.

Ethanol production has jumped from 38 crore litres in 2014 to 661 crore litres blended by June 2025.

India has met its target of blending 20% ethanol with petrol—five years ahead of schedule, the Indian Sugar & Bio-energy Manufacturers Association (ISMA) announced on Friday, according to PTI report.

The milestone marks a major leap from the 1.5% blending rate recorded in 2014, when the program was launched under Prime Minister Narendra Modi’s government, as per PTI report quoted ISMA’s statement.

The ethanol blending initiative has delivered strong economic and environmental gains. Ethanol production has jumped from 38 crore litres in 2014 to 661 crore litres blended by June 2025. This has helped cut carbon dioxide emissions by 698 lakh tonnes, ISMA noted.

The program has also boosted rural incomes and reduced India’s energy import bill. Farmers have earned Rs 1.18 lakh crore, while distilleries have made Rs 1.96 lakh crore since the program began. In addition, the country has saved Rs 1.36 lakh crore in foreign exchange expenses.

What Is Ethanol Blended Petrol (EBP) Programme

Government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 20%. This Programme is being implemented across the country to promote the use of alternative and environment friendly fuels. This intervention also seeks to reduce import dependence for energy requirements and give boost to agriculture sector.

Ethanol blending by Public Sector Oil Marketing Companies (OMCs) has increased from 38 crore litre in Ethanol Supply Year 2013-14 (ESY – currently defined as ethanol supply period from 1stNovember of a year to 31st October of the following year) to 707crore litre achieving average blending of 14.60%in ESY 2023-24.

Due to the visibility provided by the Government under EBP Programme, investments have happened across the country in the form of network of greenfield and brownfield distilleries, storage and logistics facilities apart from employment opportunities and sharing of value within the country among various stakeholders.

Business Desk

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