Lok Sabha Question No. 5400 (UNSTARRED), answered on 2025-04-03
Subject: Impact of Bio-fuel Policy
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Khagen Murmu, Shri Praveen Patel, Dr. Vinod Kumar Bind, Shri Pratap Chandra Sarangi

## LOK SABHA

## UNSTARRED QUESTION No. 5400

TO BE ANSWERED ON 03 rd  April, 2025

## IMPACT OF BIO-FUEL POLICY

## 5400.  SHRI PRATAP CHANDRA SARANGI:

DR. VINOD KUMAR BIND:

SHRI PRAVEEN PATEL:

SHRI KHAGEN MURMU:

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢी

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

- (a)  the  salient  features  of the current  bio-fuel  policy  of  Government  and the associated benefits with it;
- (b) whether there is any harmful effect of blending ethanol with petrol, if so, the details thereof; and
- (c) the anticipated greenhouse gas emission being reduced by the ethanol-blended fuels E10 and E20 in the country?

## ANSWER

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢालय मᱶ रा᭔य मंᮢी ( ᮰ी सुरेश गोपी )

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

- (a) The  salient  features  of  National  Policy  on  Biofuels-2018,  as  amended  in  2022,  are  as under:
- (i) Categorization of biofuels as 'Basic Biofuels' and 'Advanced Biofuels';
- (ii) Incentives, off-take assurance and viability gap funding for advanced biofuels;
- (iii) Allowing multiple feedstocks for production of biofuels;
- (iv) Setting  up  of  supply  chain  mechanisms  for  biodiesel  production  from  non-edible oilseeds, Used Cooking Oil, short gestation crops;
- (v) Synergy of efforts by defining role and responsibilities of all the concerned Ministries/Departments with respect to biofuels;
- (vi) Advancing the ethanol blending target of 20% blending of ethanol in petrol to Ethanol Supply Year (ESY) 2025-26 from 2030 and 5% biodiesel blending in diesel by 2030;
- (vii) Promotion  of  the  production  of  biofuels  in  the  country,  under  the  Make  in  India program,  by  units  located  in  Special  Economic  Zones  (SEZ)/Export  Oriented  Units (EoUs);
- (viii) Grant of permission for export of biofuels in specific cases;
- (ix) Institutional  mechanism  for  coordination,  implementation  and  monitoring  of  biofuels programme; and
- (x) Promotion of Research & Development in biofuels sector.

(b) & (c): Government,  under  the  National  Policy  on  Biofuels-2018,  as  amended  in  2022, 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.

Ethanol  blended  fuel  is  considered  as  environment  friendly.  The  anticipated  greenhouse  gas emission benefits with ethanol blended fuels E10 & E20, compared to neat petrol are as under:

| Emission        | Gasoline   | Two-wheelers   | Two-wheelers   | Four-wheelers   | Four-wheelers   |
|-----------------|------------|----------------|----------------|-----------------|-----------------|
| Emission        | Gasoline   | E10            | E20            | E10             | E20             |
| Carbon Monoxide | Baseline   | 20% lower      | 50% lower      | 20% lower       | 30% lower       |
| Hydrocarbons    | Baseline   | 20% lower      | 20% lower      | 20% lower       | 20% lower       |

(Source: Roadmap for Ethanol Blending in India 2020-25)

Further, during the period from Ethanol Supply Year (ESY) 2014-15 up to January 2025, the EBP programme has resulted in net CO2 reduction of about 626 lakh metric tonnes.

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