Lok Sabha Question No. 785 (UNSTARRED), answered on 2025-12-04
Subject: Promotion of Biofuel Production
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Mrs Ruchi Vira

## LOK SABHA UNSTARRED QUESTION No.785

## PROMOTION OF BIOFUEL PRODUCTION

## †785.    MRS RUCHI VIRA:

## पेĚोͧलयम और Ĥाक ृ Ǔतक गैस मंğी

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

- (a)  whether the Government proposes to promote production of sustainable feedstock for biofuels from non-food crops and agricultural residues;
- (b)  if  so,  the  details  thereof  along  with  the  steps  proposed  to  be  taken  by  the  Government  to address concerns about food security and land use; and
- (c) if not, the reasons therefor?

## 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) to (c): 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  projects  in  the  country  using  lignocellulosic  biomass  and  other  renewable feedstocks,  provide  remunerative income to farmers  for their otherwise waste agriculture residues, create  rural  and  urban  employment  opportunities,  address  concerns  of  environmental  pollution caused by burning of biomass/agriculture  residue,  reduce  soil  and  water  pollution  from  municipal solid waste, contribute to Swacch Bharat Mission, help in meeting the target envisaged in Ethanol Blended  Petrol  (EBP)  programme,  reduce  dependence  on  crude  oil  import,  etc.  This  scheme envisages setting up of  commercial  Advanced  Biofuel Projects  and demonstration scale Advanced Biofuel Projects for improving commercial viability as well as promoting R&D for development and adoption of technologies in the field of production of advanced biofuels.

Under this scheme, commercial Second Generation (2G) Paddy Straw based feedstock bio-ethanol project  has  been  set  up  by  Indian  Oil  Corporation  Ltd.  (IOCL)  at  Panipat  (Haryana).  A  Second Generation (2G) Bamboo based Biorefinery project has been set up under the scheme at Numaligarh (Assam) by Numaligarh Refinery Ltd. through a joint venture company, Assam Bio-Ethanol Private Limited (ABEPL). Indian Oil Corporation Limited (IOCL) has also established a 3G ethanol plant at Panipat, Haryana, using refinery off-gas as feedstock.

The National Policy on  Biofuels,  as  amended  in  2022,  promotes  use of, inter-alia ,  damaged  food grains like broken rice, food grains unfit for human consumption, food grains during surplus phase as declared by the National Biofuel Coordination Committee (NBCC), and agriculture residues (Rice straw, cotton stalk, corn cobs, saw dust, bagasse etc.). This Policy also promotes and encourages use of feedstock such as corn, cassava, rotten potatoes, maize, sugarcane juice & molasses. 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, and other food/feed crops for ethanol production is carefully calibrated in consultation with relevant stakeholders.

The Department of Food and Public Distribution (DFPD) has informed that Sugar production in  the  country  exceeded  domestic  demand  during  the  Sugar  Season  (SS)  2024-25  (October  September). Sugar availability during SS 2024-25 stood at 340 lakh metric ton (LMT), apart from diversion  of  34  LMT  for  ethanol  production,  as  against  the  domestic  sugar  demand  of  281  LMT. Sugar diversion for ethanol production has helped stabilize surplus sugar inventories in the country and timely payment to farmers for their cane dues. Maize production has also increased by nearly 30% from 337.30 LMT in 2021-22 to 443 LMT in 2024-25.

Ethanol Blended Petrol (EBP) Programme has resulted in expeditious payment to farmers to a tune  of  over  Rs.  1,36,300  crores  from  Ethanol  Supply  Year  (ESY)  2014-15  up  to  October  2025, besides  savings  of  more  than  Rs.  1,55,000  crore  of  foreign  exchange,  net  CO2  reduction  of approximately 790 lakh metric tonne and substitution of more than 260 lakh metric tonnes of crude oil.

The Government is also encouraging farmers to diversify from water intensive crops like rice, sugarcane,  etc.  to  more  sustainable  crops  like  maize  for  ethanol  production.  The  'Roadmap  for Ethanol  Blending  in  India  2020-25'  has  also  noted  that  technological  advancements  have  made  it possible  for  molasses-based  distilleries  with  incineration  boilers  and  grain-based  distilleries  to become  zero  liquid  discharge  (ZLD)  units,  resulting  in  negligible  pollution.  Government  is  also promoting  water  conservation  practices  in  sugarcane  cultivation  also  by  promoting  drip  irrigation under  'Per  Drop  More  Crop'  scheme.  Many  sugar  mills  are  also  running  awareness  campaigns among cane farmers for adopting water conservation techniques.

In addition, the Government has been implementing the Waste to Energy programme under National  Bioenergy  programme  to  support  setting  up  of  CBG/Bio-CNG  projects  from  urban, industrial & agricultural wastes/residues in the Country. Further, to facilitate biomass collection and prevent  the  burning  of  agricultural  residue,  the  Government  has  also  been  providing  financial assistance  to  Compressed  Bio  Gas  (CBG)  producers  for  procurement  of  Biomass  Aggregation Machinery.

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