The Government has been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme. The National Policy of 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) have 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 and approx. 14.6% during ESY 2023-24.  During the last ten years, ethanol blending in petrol by Public Sector OMCs has resulted in approximate savings of more than Rs. 1,08,655 crores of foreign exchange as on 30.09.2024.

The ethanol produced from sugar-based feedstock has helped sugar factories to reduce its surplus sugar inventory and generate revenue early to clear the dues of cane farmers. During the last ten years, EBP Programme helped in expeditious payment of approx. Rs. 92,409 crores to the farmers as on 30.09.2024.  During the same period, EBP programme has also resulted in approximate savings of more than Rs. 1,08,655 crore of foreign exchange, crude oil substitution of 185 lakh metric tonnes and net CO₂ reduction of about 557 lakh metric tonnes. It is anticipated that 20% ethanol blending in petrol is likely to result in payment of more than Rs. 35,000 crores annually to the farmers.

This information was given by THE MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS SHRI SURESH GOPI, in a written reply in Lok Sabha today

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MONIKA