Lok Sabha Question No. 4642 (UNSTARRED), answered on 2025-08-21
Subject: Ethanol Blending
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Thiru D M Kathir Anand, Dr. Mallu Ravi

## LOK SABHA UNSTARRED QUESTION No. 4642

TO BE ANSWERED ON 21 st  August, 2025

## ETHANOL BLENDING

## 4642.  THIRU D M KATHIR ANAND: DR. MALLU RAVI:

## पेĚोͧलयम और Ĥाक ृ Ǔतक गैस मंğी

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

- (a) the  current  status  of  the  India's  ethanol  blending  roadmap  and  the  targets  achieved  till  June 2025;
- (b)  the measures being taken by the Government to accelerate the development of Compressed Bio Gas (CBG) plants to ensure cleaner fuel alternatives;
- (c)  whether the Government is promoting small-scale ethanol production units linked to sugarcane, tapioca and fruit-processing industries in Tamil Nadu and if so, the details thereof; and
- (d)  whether  any  such  unit  is  proposed  in  North  Arcot  region  for  farmer  benefit  and  local employment and if so, the details thereof?

## ANSWER

## पेĚोͧलयम और Ĥाक ृ Ǔतक गैस मंğालय मɅ राÏयमंğी ( Įी सुरेश गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI SURESH GOPI)

(a):    The  Roadmap  for  Ethanol  Blending  in  India  2020-25,  prepared  by  an  inter-Ministerial Committee,  provides  guidance  to  achieve  20%  blending  in  petrol  by  Ethanol  Supply  Year  (ESY) 2025-26. The National Policy on Biofuels - 2018, as amended in 2022, inter-alia advanced the target of  20%  blending  of  Ethanol  in  petrol  from  2030  to  ESY  2025-26.  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 202324.  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.

(b): Government has taken various steps to promote the establishment of CBG projects across the country. These steps include assured price for off-take of CBG through long term agreements with Oil and Gas Marketing Companies. The Umbrella Scheme of National Bio Energy Programme interalia provides  Central  Financial  Assistance  to  all  kind  of  CBG/biogas  plants;  additional  Central Assistance for Municipal Solid Waste-based CBG projects under Swachh Bharat Mission Urban 2.0; the inclusion of bio-manure produced from CBG plants as Fermented Organic Manure (FOM) and Liquid Fermented Organic Manure (LFOM)  under Fertilizer Control Order 1985; Market Development Assistance to promote Organic Fertilizer produced from CBG projects; the inclusion of CBG projects under 'White Category' on case to case basis; the inclusion of CBG projects under Priority Sector Lending; loan products from various Banks for financing of CBG projects; etc.

Additional  initiatives  such  as  guidelines  for  synchronization  of  CBG  with  CNG  in  CGD Network; a scheme for the development of pipeline infrastructure (DPI) for injection of CBG into the City Gas Distribution (CGD) network; and phase wise mandatory selling of CBG in CNG (T) and PNG (D) segment of CGD network have also been initiated by the Government.

(c) & (d): The  National  Policy  on  Biofuels-2018,  as  amended  in  2022,  has  identified  various feedstocks for biofuels production, these inter-alia include C & B - Heavy Molasses, sugarcane juice, sugar,  sugar  syrup,  biomass  in  form  of  grasses,  agriculture  residues  (rice  straw,  cotton  stalk,  corn cobs,  saw  dust,  bagasse  etc.),  sugar  containing  materials  like  sugar  beet,  sweet  sorghum,  etc.  and starch containing materials such as corn, cassava, rotten potatoes, agro food / pulp industry waste, etc. Further, National Biofuel Coordination Committee (NBCC) formed under the National Policy on Biofuels - 2018 has also identified other feedstock such as fruit and vegetable wastes and Residual sugar/sugar  syrup  /  sweeteners  (beverages,  juices  etc.)  post  Best  Before  Date  (BBD)  products  for ethanol production.

In order to support the production of ethanol across the country including Tamil Nadu and its North Arcot region the Government have taken several steps to promote ethanol production in India which inter-alia 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, notified  the  'Pradhan  Mantri  JI-VAN  (Jaiv  Indhan-  Vatavaran  Anukool  fasal awashesh Nivaran) Yojana', to provide financial assistance for setting up Advanced Biofuels projects in the country using lignocellulosic biomass and other renewable feedstock, 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.

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