Lok Sabha Question No. 2223 (UNSTARRED), answered on 2026-02-12
Subject: Promotion of Ethanol Production
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Ramasahayam Raghuram Reddy

## LOK SABHA UNSTARRED QUESTION No. 2223

TO BE ANSWERED ON 12 th  February, 2026

## PROMOTION OF ETHANOL PRODUCTION

## 2223. SHRI  RAMASAHAYAM  RAGHURAM  REDDY:

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢी

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

- (a) the steps undertaken by the Government to boost ethanol production in order to meet its targets under the Ethanol Blended Petroleum (EBP) Programme;
- (b) whether the Government has a blueprint for promotion of 3G ethanol production, if so, the details thereof; and
- (c) whether  the  Government  is  working  on  developing  technologies  to  increase the conversion  efficiency  of  ethanol  produced  from  lignocellulosic  biomass  and  if  so,  the details thereof?

## ANSWER

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢालय मᱶ रा᭔यमंᮢी ( ᮰ी सुरेश गोपी )

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

(a): Government have taken several measures to increase ethanol production in the country to achieve 20% blending of ethanol in petrol, 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 72 Lakh Metric Tonne (LMT) of surplus Food Corporation of  India (FCI) rice for ethanol production for the 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, BHeavy Molasses as well as C-Heavy Molasses for ESY 2025-26,  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    and  increasing  ethanol storage capacity along with other allied infrastructure for handling of higher blends of ethanol.

(b) & (c): With an objective to  broaden the scope of the scheme to incorporate Advanced Biofuels  including  Third  Generation  (3G)  Ethanol,  the  Government  has  amended  the  PM  JIVAN Yojana in 2024 to provide financial support for setting up Advanced Biofuels projects in the  country  using  lignocellulosic  biomass  and  other  renewable  feedstock.  The  PM  JI-VAN scheme envisages setting up of about 12 commercial Advanced Biofuel Projects and about 10

demonstration  scale  Advanced  Biofuel  Projects.  The  purpose  of  supporting  Demonstration projects  is  to  enthuse  Technology  providers  to  display  viability  &  performance  of  their  novel technologies thereby indigenization of advanced biofuel technologies and to address, inter-alia , the  challenge  of  higher  conversion  process  cost  of  lignocellulosic  biomass  to  ethanol  as compared  to  the  conventional  molasses  to  ethanol  process.  Indian  Oil  Corporation  Limited (IOCL) has established a 3G ethanol plant of 128 Kilo litre per day capacity at Panipat, Haryana, using refinery off-gas as feedstock, which is currently under stabilization.

Department of Biotechnology (DBT) has informed that they have supported research and innovation projects focused on developing technologies to enhance the conversion efficiency of ethanol  made  from  lignocellulosic  biomass  by  providing  advanced  biocatalytic  solutions  and indigenous  bioprocesses.  DBT  through  Biotechnology  Industry  Research  Assistance  Council (BIRAC) has supported  setting  up  of  a  10  tonnes  lignocellulosic  biomass  per  day  processing plant to produce about 3,000 litres of ethanol per day and the development of a novel cocktail of cellulosic enzymes.

IOCL  R&D  has  also  developed  a  2G  ethanol  technology  with  integrated  enzyme production  and  mechanically  completed  a  10  tonnes  per  day  demonstration  plant  at  Panipat, integrated with onsite enzyme production,  utilizing biomass feedstocks such as rice straw, wheat straw, and bagasse. Bharat Petroleum Corporation Limited  (BPCL)  has  developed and successfully  demonstrated  an  in-house  2G  ethanol  process  using  lignocellulosic  biomass. Hindustan Petroleum Corporation Limited (HPCL) has taken initiative to develop 2G technology and in-house enzyme development to improve overall viability of the process.

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