India Achieves 20% Ethanol Blending in Petrol by 2025, Surpassing 2030 Target Ahead of Time.
National
In early 2025, India successfully reached a 20% ethanol blending ratio (E20) in petrol—five to six years ahead of the original deadline of 2030. The milestone was officially confirmed by Union Petroleum and Natural Gas Minister Hardeep Singh Puri on 23 July 2025, during an event linked to the Open Acreage Licensing Policy (OALP) Round‑IX signing ceremony.
- Back in June 2021, the government revised its ethanol blending roadmap—shifting the 20% target from 2030 to Ethanol Supply Year (ESY) 2025‑26—as part of the Ethanol Blended Petrol (EBP) Programme. By early 2022, India had already surpassed the 10% blending mark, reaching nearly 19.6% by late 2024.
- This achievement has led to significant savings of foreign exchange—around ₹1.36 lakh crore, up to ₹1.5 lakh crore—by reducing crude oil imports. It has also boosted rural incomes: ₹1.18 lakh crore paid to distilleries and ₹1.96 lakh crore transferred to farmers benefiting from higher ethanol demand. Approximately 698 lakh tonnes of CO₂ emissions were avoided due to cleaner fuel use.
- India's ethanol production capacity surged to nearly 1,685 cr litres by mid-2025, underpinned by expanded infrastructure and feedstock diversification—drawing from sugarcane, maize, and surplus rice. For example, record 5.2 million MT of FCI rice was allocated for ethanol to support blending goals.
Main Point :- (i) According to the government’s roadmap, addressing domestic supply required about 1,016 cr litres of ethanol annually by ESY 2025‑26—correctly calibrated by production data.
(ii) Following E20 success, the government is exploring accelerated blending targets up to 27% (E27)—aligning with global standards like Brazil. A committee under NITI Aayog is evaluating the feasibility and ecosystem readiness to scale blending beyond 20%.
(iii) According to the Minister, ethanol blending is a core pillar alongside green hydrogen and electric vehicles (EVs) in India's long-term energy transition vision—targeting a sustainable economy sized at $7–10 trillion. India now ranks among the top ethanol-blending nations globally, with Brazil being a benchmark for future ambition.
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