The total quantity of ethanol produced and supplied to Oil Marketing Companies (OMCs) for blending with petrol during Ethanol supply Year (ESY) 2023-24 was about 672 crore litres. In current Ethanol supply Year (ESY) 2024-25, about 261 crore litres has been produced and supplied to OMCs (as on 23.02.2025).

For achieving target of 20% ethanol blending with petrol in ESY 2025-26, about 1016 Crore litres of ethanol will be required.

Material compatibility with E20 fueled engines has been achieved w.e.f. April, 2023. Under Ethanol Blended Petrol (EBP) Programme, Government has fixed the target of rolling out the vehicles with E20 tuned engines from April, 2025. Vehicles running on E20 experience a slight decrease in fuel efficiency compared to gasoline.

In order to promote setting up of ethanol production plants in the country, the Government has notified various Ethanol Interest Subvention Schemes during 2018-22. A new scheme for Cooperative Sugar Mills has also been notified on 06.03.2025 for conversion of their existing sugarcane based plants into multi-feed based ethanol plants.

Government has also been taking various steps to promote production of ethanol in the country such as fixation of remunerative prices of ethanol produced from different feed-stocks for supply to OMCs; reduction in Goods & Service Tax (GST) on ethanol meant for EBP Programme from 18% to 5%; promotion of maize as a major feedstock for ethanol production under Ethanol Blended with Petrol (EBP) Programme; Long Term Offtake Agreements (LTOAs) by OMCs with Dedicated Ethanol Plants (DEPs) etc.

Further, a scheme namely, “Pradhan Mantri JI-VAN (Jaiv Indhan – Vatavaran Anukool Fasal Awashesh Nivaran) Yojana” 2019, amended in 2024, has been notified to provide financial support for setting up Advanced Biofuels projects in the country.

This information was given by the Union Minister of State for the Ministry of Consumer Affairs, Food and Public Distribution, Smt. Nimuben Jayantibhai Bambhaniya in a written reply today in the Lok Sabha.

*****

Abhishek Dayal/Nihi Sharma

(Release ID: 2110936) Visitor Counter : 336