Ethanol blending with petrol has surpassed 13% during the current supply year (2023-24), up from 12.06% in the previous year, according to Suresh Gopi, Minister of State for Petroleum and Natural Gas. He provided this update to the Lok Sabha on Thursday, highlighting the increase in ethanol supply, which exceeded 500 crore litres in 2022-23.
Government-owned Oil Marketing Companies (OMCs), including Indian Oil, Bharat Petroleum, and Hindustan Petroleum, have issued bids to procure nearly 66 crore litres of ethanol for the 2023-24 supply year, which spans from November 1, 2023, to October 31, 2024.
Under the Ethanol Blended Petrol (EBP) Programme, ethanol blending has increased significantly, rising from 38 crore litres in the 2013-14 Ethanol Supply Year (ESY) to 302.3 crore litres in ESY 2020-21. The blending percentage during this period also grew from 1.53% to 8.17%. This expansion occurred alongside a 64% increase in petrol consumption, the minister noted.
Fuel-grade ethanol production and supply to OMCs has increased over sevenfold from ESY 2013-14 to ESY 2020-21. The success of the programme has prompted the government to advance its target for 20% ethanol blending from 2030 to ESY 2025-26, Gopi explained.
To achieve this target, the government has implemented several measures, including a detailed roadmap for ethanol blending, expanding the range of feedstock for ethanol production, setting remunerative prices for ethanol procurement, and reducing the Goods and Services Tax (GST) rate on ethanol to 5% for the EBP Programme. Additionally, the Industries (Development & Regulation) Act was amended to allow the free movement of ethanol across states for blending.
An interest subvention scheme has been introduced to enhance and augment ethanol production capacity. Public Sector OMCs have also been regularly issuing Expressions of Interest (EoIs) for ethanol procurement, the minister added.
The National Policy on Biofuels-2018, amended in 2022, identifies a variety of feedstock for ethanol production. These include heavy molasses, sugarcane juice, sugar, sugar syrup, biomass such as grasses, agricultural residues like rice straw, cotton stalks, corn cobs, sawdust, and bagasse.
Other identified feedstock includes sugar-containing materials like sugar beet and sweet sorghum, starch-containing materials such as corn, cassava, and rotten potatoes, as well as agro-food pulp industry waste, damaged food grain, and surplus food grain declared by the National Biofuel Coordination Committee (NBCC). Additionally, industrial waste, off-gases, algae, and seaweed cultivation are also listed as potential sources for ethanol production, the minister said.
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