Sunday, 23 Mar, 2025
The Union Government has laid a major emphasis on the production of ethanol in the country and also blending it with petrol. Image Source: IANS
When E20 is used instead of E0 (neat petrol), carbon monoxide emissions are predicted to be reduced by approximately 50 percent for two-wheelers and 30 percent for four-wheelers.
Minister of Road Transport and Highways Nitin Gadkari recently said that India will achieve its target of 20 percent ethanol blending in the next two months. "We will achieve this target of 20 percent ethanol blending in the next two months. “Use of E20 (petrol with 20 percent ethanol) will help in reducing pollution,” Gadkari said while speaking at an event.
According to the minister of road transport and highways, Hyundai Motors, Maruti Suzuki, Mahindra & Mahindra, and Tata Motors have begun producing automobiles that are entirely powered by bioethanol.
Given that 42 Indian towns rank among the top 50 most polluted in the world, Gadkari remarked that pollution is a major issue in the nation. When E20 is used instead of E0 (neat petrol), carbon monoxide emissions are predicted to be reduced by approximately 50 percent for two-wheelers and 30 percent for four-wheelers.
The Niti Aayog's roadmap to accomplish ethanol blending targets stipulated that grain-based distilleries' capacity should rise from 258 to 740 crore litres, while sugarcane-based distilleries' capacity would need to increase from 426 crore litres in 2021 to 760 crore litres in 2026. Stated differently, there were going to be a lot more grain-based distilleries built. In addition to fuel ethanol, 310 crore litres will be required to produce ethanol for industrial and consumable spirits applications. When the government took stock in December 2023, it reported that India's ability to produce ethanol had already climbed to 1,380 crore litres, of which 875 crore came from sugarcane and 505 crore from foodgrains.
In decreasing order of sugar concentration, sugarcane yields three main related products: sugarcane juice and syrup, B-heavy molasses, and C-heavy molasses. Usually, the first two are used to produce sugar, and the third is used to produce ethanol. The government had begun allowing the first two to be diverted from the production of sugar to fuel ethanol in an attempt to increase the production of the fuel. The cost of ethanol is determined by the amount of sugar in the input. In 2022–2023, B-heavy molasses accounted for 63 percent of fuel ethanol, whereas molasses accounted for 33 percent. The government limited the first two's diversion in December 2023 due to concerns over declining sugar stocks.
The Union Government has laid a major emphasis on the production of ethanol in the country and also blending it with petrol. The government has taken various steps in providing a boost to the ethanol production and ethanol production capacity in the country. A “Roadmap for Ethanol Blending in India 2020-25” was released by the PM in June 2021 which laid out a detailed pathway for achieving 20 percent ethanol blending. Due to the coordinated efforts of the Public Sector Oil Marketing Companies (OMCs) and the increase in diversion of sugar for ethanol production, the target of 10 percent blending under the programme had been achieved much ahead (August 2022) of the targeted deadline of November 2022 wherein the Public Sector OMCs have attained an average 10 percent ethanol blending in petrol across the country.
Source: Ministry of Consumer Affairs, Food & Public Distribution and Ministry of Petroleum and Natural Gas
The ethanol production capacity in India has increased from 423 crore litres in 2019-20 to 1,623 crore litres in 2024-25. The Central Government has taken various steps to increase production and utilization of ethanol. The Government has amended the Industries (Development & Regulation) Act to ensure free movement of ethanol in the country. The Government has also reduced the Goods & Service Tax (GST) on ethanol meant for Ethanol Blended with Petrol (EBP) Programme from 18 percent to 5 percent since 2018.
Under the ethanol blending programme, an indicative target of 20 percent blending of ethanol in petrol by 2030 was laid out. Subsequently, the target year for achieving 20 percent ethanol blending in petrol was also advanced to 2025. By blending 20 percent ethanol, the nation could experience significant benefits, including energy security, reduced carbon emissions, improved air quality, self-reliance, the use of damaged food grains, an increase in farmer incomes, the creation of jobs, and more investment opportunities. Also, the central government is urging sugar mills to divert extra sugarcane to ethanol in order to find a long-term solution to the issue of excess sugar.
Union minister Piyush Goyal launched a new Sugar-Ethanol portal, taking a big step towards encouraging renewable energy sources and lowering reliance on fossil fuels. The portal, which was introduced at the "National Conference of Food Ministers of States/UTs," intends to increase sugarcane-derived ethanol production and consumption in India. The portal provides information on legislation, regulations, market trends, and the most recent advancements in the industry, acting as a complete platform for stakeholders in the sugar and ethanol industries.
In March 2024, the then Minister for Petroleum & Natural Gas and Housing and Urban Affairs launched ‘ETHANOL 100,’ a revolutionary automotive fuel. Because it emits fewer greenhouse gases and other pollutants than gasoline, ETHANOL 100 is a cleaner, greener option that can help fight climate change and improve local air quality. ETHANOL100's high octane rating, which is normally between 100 and 105, makes it perfect for high-performance engines, guaranteeing increased power output and efficiency while reducing its negative effects on the environment. Furthermore demonstrating its practicality and potential to become a mainstream fuel option with the proper infrastructure in place, ETHANOL 100 can be used in a wide range of vehicles, including flex-fuel vehicles (FFVs) that are made to run on gasoline, ethanol, or any combination of the two.
The Ethanol Blended Petrol (EBP) program assisted in the prompt payment of approximately ₹23,100 crore to farmers during the Ethanol Supply Year 2023–24 (as of 30.09.2024), the approximate savings of over ₹28,400 crore in foreign exchange, the substitution of over 43 lakh metric tonnes of crude oil, and the net reduction of approximately 29 lakh metric tonnes of CO2. The ethanol blending programme has produced substantial benefits over the last ten years, such as a reduction in CO2 emissions of 544 lakh metric tons, a substitution of 181 lakh metric tons of crude oil, and foreign exchange savings of ₹1,06,072 crore. Additionally, OMCs have disbursed ₹87,558 crore to farmers and ₹1,45,930 crore to distillers, demonstrating the program's significant economic impact.
