Lok Sabha Question No. 404 (STARRED), answered on 2025-08-21
Subject: Promotion of Biofuel Blending
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Dharambir Singh

## LOK SABHA STARRED QUESTION No. *404

August, 2025

## PROMOTION OF BIOFUEL BLENDING

## *404. SHRI DHARAMBIR SINGH

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  whether the Government is promoting biofuel blending of petrol and diesel and if so, the details thereof;
- (b)  the  details  of  support  to  biofuel  producing  units  across  the  country  along  with  the  steps taken/to be taken by the Government to involve farmers in biofuel supply chains;
- (c)  whether the Government has any plans to encourage the use of crop residue for biofuel and if so, the details thereof; and
- (d)  whether such initiatives are likely  to  be  introduced  in  Bhiwani-Mahendragarh Lok Sabha Constituency and if so, the details thereof?

## ANSWER

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢी ( ᮰ी हरदीप ᳲसह पुरी )

MINISTER OF PETROLEUM & NATURAL GAS (SHRI HARDEEP SINGH PURI)

- (a) to (d):  A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PART (a) TO (d) OF THE LOK SABHA STARRED  QUESTION  NO.  *404  TO  BE  ANSWERED  ON  21.08.2025  REGARDING 'PROMOTION OF BIOFUEL BLENDING'.

(a) to (d): The promotion of use of biofuels as a suitable alternative to petroleum products has been done through the National Policy on Biofuels.

Government  has  been  promoting  the  blending  of  ethanol  in  petrol  under  the  Ethanol Blended Petrol (EBP) Programme with multiple  objectives. As a green fuel, ethanol supports environmental  sustainability  efforts  of  the  Government.  It  reduces  dependence  on  crude  oil imports  while  saving  foreign  exchange  and  promotes  the  domestic  agriculture  sector.  EBP Programme has resulted in expeditious payment to farmers of more than Rs.1,25,000 crore from Ethanol Supply Year (ESY) 2014-15 up to July 2025, besides savings of more than Rs.1,44,000 crore of foreign exchange, net CO2 reduction of about 736 lakh metric tonnes and substitution of more than 244 lakh metric tonnes of crude oil. Under the EBP Programme, Public Sector Oil Marketing Companies (OMCs) achieved the target of 10% Ethanol blending in petrol in June 2022 i.e.  five  months  ahead  of  the  target  during  ESY  2021-22,  12.06%  in  ESY  2022-23  and 14.60% in ESY 2023-24. Further, for the ongoing ESY 2024-25, the blending percentage has gone  up  to  19.05%  as  on  31.07.2025.  During  the  month  of  July,  2025,  Ethanol  blending  of 19.93% has been achieved.

In  order  to  support  the  production  of  ethanol  across  the  country  including  Bhiwani  Mahendergarh Lok Sabha Constituency, the Government have taken several steps which interalia includes expansion of feedstock for Ethanol production, administered price mechanism for Ethanol procurement under the Ethanol Blended Petrol (EBP) Programme, lowered GST rate to 5%  for  Ethanol  for  EBP  Programme,  introduction  of  various  Ethanol  Interest  Subvention Schemes (EISS) during 2018-22, a dedicated subvention scheme for Cooperative Sugar Mills to convert existing sugarcane-based distilleries into multi-feedstock plants for ethanol production from molasses as well as grains, Long Term Offtake Agreements (LTOAs) between OMCs and Dedicated Ethanol Plants, multimodal transportation of ethanol to enhance availability of ethanol and  increasing  ethanol  storage  capacity  along  with  other  allied  infrastructure  for  handling  of higher blends of ethanol.

To further facilitate ethanol production, Government have notified the "Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool Fasal Awashesh Nivaran) Yojana" in 2019, amended in  2024,  with  the  objectives  to  establish  advanced  biofuels  projects  in  the  country  using lignocellulosic biomass  and  other  renewable feedstocks including crop residue, provide remunerative income to farmers for their otherwise waste agriculture residues, create rural and urban  employment  opportunities,  address  concerns  of  environmental  pollution  caused  by burning  of  biomass/agriculture  residue,  reduce  soil  and  water  pollution  from  municipal  solid waste,  contribute  to  Swacch  Bharat  Mission,  help  in  meeting  the  target  envisaged  in  Ethanol Blended  Petrol  (EBP)  programme,  reduce  dependence  on  crude  oil  import,  etc.  The  total financial outlay for PM JI-VAN is Rs. 1,969.50 crore, of which Rs. 1,800 crore is allocated for commercial-scale advanced biofuel projects and Rs. 150 crore for demonstration-scale advanced biofuel projects.

Government have also taken several measures to support use of biodiesel, which interalia  include  prescribing  indicative  target  of  blending  of  biodiesel  in  diesel  /  direct  sale  of biodiesel under the National Policy on Biofuels, notifying of 'Guidelines for sale of biodiesel for blending  with  high  speed  diesel  for  transportation  purposes-2019',  reduction  of  GST  rate  for procurement of biodiesel for blending programme from 12% to 5%, etc.

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