Lok Sabha Question No. 3215 (UNSTARRED), answered on 2025-12-18
Subject: Ethanol Blending in Petrol
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Dr. Lata Wankhede

## LOK SABHA UNSTARRED QUESTION No. 3215

TO BE ANSWERED ON 18 th  December, 2025

## ETHANOL BLENDING IN PETROL

## 3215.    DR. LATA WANKHEDE:

## पेĚोͧलयम और Ĥाक ृ Ǔतक गैस मंğी

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

- (a) the  manner  in  which  the  progress  has  been  made  towards  meeting  the  target  of  twenty  per cent ethanol blending in petrol ahead of the original 2030 timeline;
- (b) the  steps  taken  and  incentives  proposed  to  promote  ethanol  production  and  supply  under the Ethanol Blended Petrol (EBP) Programme;
- (c) the  manner  in  which  cooperative  sugar  mills  and  advanced  biofuel  projects  are  supported under schemes such as the PM JI-VAN Yojana; and
- (d) the  details  of  the  infrastructure  and  logistical  measures  being  taken  to  enhance  ethanol availability across the country?

## ANSWER

## पेĚोͧलयम और Ĥाक ृ Ǔतक गैस मंğालय मɅ राÏय मंğी ( Įी 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  from  2030  to  Ethanol  Supply  Year  2025-26  (ESY-  1st November, 2025 to 31st October, 2026). 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. During Ethanol Supply Year (ESY)  2024-25,  more  than  1000  crore  litres  of  ethanol  have  been  blended  thereby  achieving  an average blending of 19.24% ethanol in Petrol. In the month of October, 2025, ethanol blending of 19.97% has been achieved.

(b) to (d): In order to ensure consistent availability of feedstock and infrastructure for ethanol production  in  the  country,  Government  have  taken  several  steps  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, signing of 233 Long Term Offtake Agreements (LTOAs) between OMCs and Dedicated

Ethanol Plants, allocation of 52 Lakh Metric Tonne (LMT) of surplus Food Corporation of  India (FCI) rice for ethanol production, each for the ESY 2024-25 (from 1 st November 2024 to 31 st October 2025) and ESY 2025-26, diversion of 40 LMT of sugar for ethanol production for the ESY 2024-25 and unrestricted production of ethanol from sugarcane juice/sugar syrup, B-Heavy Molasses as well as C-Heavy Molasses for ESY 2025-26,  multimodal transportation of ethanol  and increasing ethanol storage capacity along with other allied infrastructure for handling of higher blends of ethanol.

Further, the Government had notified the 'Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana 2019', amended in 2024, with the objectives to establish advanced biofuels including Sustainable Aviation Fuel projects in the country using lignocellulosic biomass and other renewable feedstocks.  Under this scheme, the maximum financial assistance of Rs. 150 crore per project for commercial scale projects and Rs. 15 crore per project for demonstration scale projects have been prescribed.

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