Lok Sabha Question No. 391 (STARRED), answered on 2025-03-27
Subject: Ethanol Blended Petrol Programme
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Smt. Kamlesh Jangde, Shri Manoj Tiwari

## LOK SABHA STARRED QUESTION No. *391

TO BE ANSWERED ON 27 th  March, 2025

## ETHANOL BLENDED PETROL PROGRAMME

†*391. SMT.  KAMLESH  JANGDE: SHRI  MANOJ  TIWARI:

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢी

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

- (a) the  details  of  the  Ethanol  Blended  Petrol  (EBP)  Programme  being  implemented  by    the Government;
- (b)  the  details  of  increase  in  ethanol  supply  during  the  years  2013-14  to  2024-25,  till  February 2025;
- (c) the details of the guidelines issued by the Government on ethanol blending;
- (d)  the average blending of ethanol targeted by the Government during the upcoming three years, particularly by February-March, 2025 and February-March, 2026; and
- (e)  the contribution of EBP Programme with respect to foreign exchange impact and net Carbon dioxide reduction during the last ten years?

## ANSWER

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

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

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

## STATEMENT REFERRED TO IN REPLY TO PART (a) TO (e) OF THE LOK SABHA STARRED  QUESTION  NO.  *391  TO  BE  ANSWERED  ON  27.03.2025  REGARDING 'ETHANOL BLENDED PETROL PROGRAMME'.

(a) to (e): Government have been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme with multiple objectives. As a green fuel, Ethanol supports the environmental sustainability efforts of the Government. It reduces import dependence on crude oil while saving foreign exchange and promotes domestic agriculture sector.

EBP Programme has resulted in expeditious payment to farmers of more than Rs. 1,04,000 crore from Ethanol Supply Year (ESY) 2014-15 up to January 2025, besides savings of more than Rs. 1,20,000 crore of foreign exchange, net CO2 reduction of about 626 lakh metric tonnes and substitution of more than 200 lakh metric tonnes of crude oil.

Government issued a Notification dated 02.06.2021 directing Oil  Companies to sell ethanol blended  petrol  with  percentage  of  ethanol  up  to  twenty  per  cent  as  per  the  Bureau  of  Indian Standards  (BIS)  specifications  with  effect  from  01.04.2023,  which  was  later  advanced  to 15.12.2022.    Further,  the  National  Policy  on  Biofuels  -  2018,  as  amended  in  2022, inter-alia, advanced the target of 20% blending of ethanol in petrol to ESY 2025-26 from 2030.

Interventions by the Government have led to increased ethanol blending with petrol from 38 crore litres in ESY 2013-14 to 707 crore litres in ESY 2023-24 with corresponding increase in blending percentage from 1.53% to 14.60%. For the ongoing ESY 2024-25, Public Sector OMCs have targeted 18% ethanol blending in petrol. In February, 2025 ethanol blending of 19.68% has been achieved. So far, no decision has been taken by the Government to increase ethanol blending beyond 20%.

Government have issued various guidelines on ethanol blending which, inter-alia, include:

- i. Introduction of administered price mechanism  in December,  2014  for ethanol produced under the Ethanol Blended Petrol (EBP) Programme.
- ii. National Policy on Biofuels - 2018, and its amendment in 2022.
- iii. Amending  the  Industries  (Development  and  Regulation)  Act,  1951  to  facilitate intrastate and interstate movement of ethanol under EBP Programme.
- iv. Lowering GST rate to 5% on ethanol meant for EBP programme.
- v. Ethanol procurement policy, 2019 for procurement of ethanol on a long-term basis.
- vi. Roadmap for Ethanol blending in India for the period 2020-2025.
- vii. Advancing the target for 20% ethanol blending in petrol to the Ethanol Supply Year (ESY) 2025-26 from 2030.
- viii. Guidelines  for  setting  up  Dedicated  Ethanol  Plants  (DEPs)  in  ethanol  deficit  states, issued in August 2021 and signing of Long Term Offtake Agreements.
- ix. Ethanol Interest Subvention Schemes, from 2018 to 2022, by Department of Food and Public Distribution (DFPD) for augmentation of ethanol production capacity.
- x. Pradhan Mantri JI-VAN (Jaiv Indhan - Vatavaran Anukool fasal awashesh Nivaran) Yojana 2019, amended in 2024, to provide financial support for setting up Advanced Biofuels  projects  in  the  country  using  lignocellulosic  biomass  and  other  renewable feedstock.

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