Lok Sabha Question No. 3226 (UNSTARRED), answered on 2025-03-20
Subject: Increasing of Ethanol Blending beyond 20%
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Manoj Tiwari, Shri P C Mohan, Dr. K Sudhakar, Shri Shivmangal Singh Tomar, Shri Jashubhai Bhilubhai Rathva, Shri Bhojraj Nag, Shri Chavda Vinod Lakhamshi, Dr. Hemant Vishnu Savara, Shri Ramesh Awasthi, Shri Alok Sharma, Shri Gajendra  Singh Patel, Smt. Roopkumari Choudhary, Shri Praveen Patel, Shri Lumbaram Choudhary, Shri Janardan Mishra, Shri Jaswantsinh Sumanbhai Bhabhor, Shri Khagen Murmu, Shri Captain Brijesh Chowta, Shri Anurag Sharma

## LOK SABHA UNSTARRED QUESTION No. 3226

TO BE ANSWERED ON 20 th  March, 2025

## INCREASING OF ETHANOL BLENDING BEYOND 20%

3226.  Shri Anurag Sharma:

Shri Jaswantsinh Sumanbhai Bhabhor:

Shri Bhojraj Nag:

Shri Jashubhai Bhilubhai Rathva:

Shri Ramesh Awasthi:

Smt. Roopkumari Choudhary:

Shri P C Mohan:

Shri Lumba Ram Chaudhary:

Shri Captain Brijesh Chowta:

Shri Gajendra Singh Patel:

Shri Alok Sharma:

Shri Praveen Patel:

Shri Janardan Mishra:

Shri Khagen Murmu:

Dr. Hemant Vishnu Savara:

Dr. K Sudhakar:

Shri Shivmangal Singh Tomar:

Shri Chavda Vinod Lakhamshi:

Shri Manoj Tiwari:

## पेᮝोिलयम और ᮧाकृितक गैस मंᮢी

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

- (a)  the specific timeline being considered for increasing ethanol blending beyond 20 percent;
- (b)  the measures taken/being taken to address potential vehicle compatibility issues with higher ethanol blends;
- (c)  the manner in which the increased ethanol blending target will impact India's agricultural sector particularly sugarcane and maize production;
- (d)  the  manner  in  which  farmers  and  ethanol  producers  would  be  incentivized  to  scale  up production sustainably;
- (e)  the  manner  in  which  the  Government  plans  to  balance  maize  and  sugarcane  allocation between ethanol production and food supply chains to ensure food security while advancing renewable energy initiatives; and
- (f) the manner in which the farmers of Karnataka have benefited from this program so far and the future procurement planned from farmers of Karnataka?

## ANSWER

पेᮝोिलयम और ᮧाकृितक गैस मंᮢालय मᱶ रा᭔य मंᮢी (᮰ी सुरेश गोपी)

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

(a) The  National  Policy  on  Biofuels  -  2018,  as  amended  in  2022, inter-alia advanced  the target of 20% blending of ethanol in petrol to Ethanol Supply Year (ESY) 2025-26 from 2030. 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. Blending of ethanol further increased to 12.06% in ESY 2022-23, 14.60% in ESY 2023-24 and 17.98% in ESY 202425 upto 28 th February 2025. So far, no decision has been taken by the Government for increasing ethanol blending beyond 20%.

(b) According to the Roadmap for Ethanol Blending in India 2020-25, prepared by an interministerial committee, using 20% ethanol-blended petrol (E20) results in marginal reduction in fuel efficiency for four-wheelers designed for E10 and calibrated for E20. The Society of Indian Automobile  Manufacturers  (SIAM)  had  informed  the  committee  that  with  modifications  in engine  hardware  and  tuning,  the  efficiency  loss  due  to  blended  fuel  can  be  reduced.  The committee report has also highlighted that no major issues were observed in vehicle performance, wear of engine components, or engine oil deterioration with E20 fuel.

(c) to (e) The National Policy on Biofuels permits use of food grains during surplus phase as declared  by  the  National  Biofuel  Coordination  Committee.  This  Policy  also  promotes  and encourages use of feedstock such as  corn,  cassava,  rotten potatoes, damaged  food grains  like broken  rice,  food  grains  unfit  for  human  consumption,  maize,  sugarcane  juice  &  molasses, agriculture residues (Rice straw, cotton stalk, corn cobs, saw dust, bagasse etc.). The extent of utilization of individual feedstock for ethanol production varies annually, influenced by factors such  as  availability,  costs,  economic  feasibility,  market  demand,  and  policy  incentives.  Any diversion  of  sugarcane  juice,  its  by-products,  maize  etc.  for  ethanol  production  is  carefully calibrated in consultation with relevant stakeholders.

Further, Government, since 2014, has taken several measures to encourage farmers and ethanol  producers  to  scale  up  production  under  the  EBP Programme  which  include  expanding feedstock  for  ethanol  production,  implementing  an  administered  price  mechanism  for  the procurement of ethanol under the EBP Programme, lowering the GST rate to 5% on ethanol for the  EBP  Programme,  amending  the  Industries  (Development  and  Regulation)  Act  to  facilitate intrastate  and  interstate  movement  of  ethanol,  simplifying  the  ethanol  procurement  process  by Public  Sector  Oil  Marketing  Companies  (OMCs),  and  advancing  the  target  for  20%  ethanol blending in petrol to the Ethanol Supply Year (ESY) 2025-26 from 2030. Additionally, during 2018-22,  the  Government  introduced  various  Ethanol  Interest  Subvention  Schemes  (EISS)  for ethanol production from both molasses and grains to establish ethanol plants. Long Term Offtake Agreements (LTOAs) were also signed by OMCs with Dedicated Ethanol Plants (DEPs).

(f) During ESY 2023-24 (November 2023 to October 2024), OMCs procured 679 crore litres of ethanol, of which 53.8 crore litres were supplied by distilleries based in Karnataka. For the ongoing ESY 2024-25, Public Sector OMCs have allocated 1000 crore litres of ethanol, of which 159.3 crore litres have been allocated to distilleries based in Karnataka. Furthermore, under the EBP Programme, since 2014-15, ethanol blending in petrol by Public Sector OMCs has resulted in expeditious payments to farmers of more than Rs. 1,04,000 crore, including those in the state of Karnataka, up to January 2025.

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