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New Delhi: India’s ethanol blending programme has saved Rs 99,014 crore in foreign exchange between 2014 and 2024, said Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Monday. Addressing the inaugural ceremony of India Bio-Energy & Tech Expo 2024 (IBETE), Puri termed the programme a “major success.” He said, “India’s energy blending programme has been clearly a major success. Ethanol blending percentage has gone up from 1.53 percent in 2014 to 15 percent in 2024. The foreign exchange saved in the period between 2014 and 2024, that is till July 14, 2024, was Rs 99,014 crore. The carbon dioxide emissions lowered till July 14, 2024 for a steadier period, 519 lakh metric tons. Crude oil substitution achieved till July 14, 2024 was 173 lakh metric tonnes. Amount paid to the distributors by OMCs was Rs 1,45,930 crores. Amount paid to the farmers was Rs 87,538 crores.”
“Buoyed by the success, we advanced the 20 percent target by five years to be completed by the ethanol blending year for 2025, which will be by October 2025. I am very happy to inform you that we are on track to achieve that,” the minister said. Puri emphasized that bioenergy is increasingly becoming a crucial alternative to fossil fuels, offering both environmental benefits and economic opportunities, particularly in rural areas.
Puri elaborated on the Indian government’s strategic efforts to advance the bioenergy sector, highlighting its significance in reducing import dependence, saving foreign exchange, and promoting a circular economy. The government’s strategy encompasses several vital areas, including ethanol and biodiesel blending, Compressed Biogas (CBG), Sustainable Aviation Fuels, biomass utilisation (such as pellets and briquettes), Biohydrogen, and waste-to-energy solutions.
Puri also highlighted the widespread availability of E20 fuel, which is now offered at over 15,600 retail outlets across India. He commended the Pradhan Mantri JI-VAN Yojana for its essential role in providing financial support to advanced biofuel projects, which is crucial for developing a sustainable ethanol production ecosystem.
The Petroleum Minister outlined several key government initiatives designed to enhance ethanol production and mitigate environmental impact. Notably, two second-generation (2G) refineries have been established in Panipat and Numaligarh to convert agricultural residues like Parali and bamboo into ethanol. “These refineries are instrumental in reducing pollution and bolstering energy security while transforming farmers into "urjadata" or active contributors to the energy sector,” he said.
To further support the ethanol industry, Puri said that the government has introduced various incentives for ethanol production. These include Rs 9.72 per litre for ethanol derived from maize, Rs 8.46 per litre for ethanol from damaged rice, and Rs 6.87 per litre for ethanol from C-heavy molasses. These incentives have significantly boosted maize’s contribution to ethanol production, which has risen to 36 percent in the 2023-24 Ethanol Supply Year (ESY) from a mere 0 percent in 2021-22. Additionally, he said, the government has resumed the supply of FCI rice to ethanol distilleries, allowing for the purchase of up to 23 lakh tonnes through e-auctions from August to October 2024. Starting from November 2024, the supply of sugarcane juice and syrup to distilleries will also commence, marking the start of the 2024-25 Ethanol Supply Year, the minister added.
Puri emphasised the importance of diversifying feedstocks for ethanol production to ensure security and avoid over-reliance on any single source. “The government’s ongoing policy of providing stable and remunerative prices for ethanol has effectively reduced pending arrears for sugarcane farmers, lessened crude oil import dependence, and contributed to foreign exchange savings while benefiting the environment,” said Puri.
A major milestone in ethanol fuel expansion was highlighted by the Petroleum Minister with the successful launch of E100 fuel at over 400 retail outlets across the country.
Puri urged Nitin Gadkari, Minister for Road Transport and Highways, to encourage automobile manufacturers to produce vehicles compatible with E100 fuel. He addressed common misconceptions about ethanol blending, clarifying that blending ethanol with petrol not only improves engine performance by increasing the octane number but also enhances engine efficiency. Contrary to some concerns, ethanol’s presence in fuel helps prevent pre-ignition knock and improves overall engine operation.
Drawing from global practices, Puri cited Brazil’s successful use of high ethanol blends—up to 60-70 percent in vehicles—demonstrating the viability of high ethanol content. He reassured that India is committed to scaling up E20 production and supporting the transition with measures to facilitate the use of transition fuels in older vehicles.
The minister also commended the automobile industry for its proactive approach, noting that manufacturers are not only producing new E20-compliant vehicles but are also developing retrofit kits for older models. “These kits, which can be installed during regular servicing, represent a significant advancement in accommodating older vehicles and promoting biofuel adoption,” he added.
Puri underscored the vital role of biofuels in reducing fossil fuel dependence and emissions, paving the way for a cleaner and more sustainable future. He also discussed the Global Biofuels Alliance (GBA), established during India’s G20 presidency, which serves as a collaborative platform for sharing knowledge, advancing technology, and developing policies to harness the USD 500 billion opportunity in biofuels and accelerate global adoption through technology transfer.
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