In a major stride toward reducing dependence on crude oil imports and lowering carbon emissions, the Indian government has achieved significant milestones in promoting ethanol blending with petrol. Efforts over the past decade have transformed ethanol production and distribution, elevating the blending rate from a modest 1.53% in 2013-14 to an impressive 14.60% in the current ethanol supply year (2023-24).
These accomplishments were outlined in a written reply by Suresh Gopi, Minister of State in the Ministry of Petroleum and Natural Gas, in the Lok Sabha today.
A Decade of Strategic Initiatives
Since 2014, the government has implemented a series of impactful measures under the Ethanol Blended Petrol (EBP) Programme, including:
- Broadening Feedstock Sources: Diversifying ethanol production to include molasses and grains.
- Administered Price Mechanisms: Ensuring fair pricing for cane-based ethanol to encourage production.
- Tax Incentives: Reducing the GST rate on ethanol for the EBP Programme to 5%.
- Ethanol Interest Subvention Schemes (EISS): Supporting ethanol production through interest subsidies from 2018 to 2022.
- Dedicated Ethanol Plants (DEPs): Establishing Long-Term Offtake Agreements (LTOAs) between oil marketing companies (OMCs) and DEPs.
Significant Achievements in Ethanol Supply
The supply of ethanol for blending by public sector OMCs has surged dramatically from 2506 crore liters in 2013-14 to an estimated 4828 crore liters in 2023-24. This increase has resulted in the substitution of approximately 185 lakh metric tonnes (LMT) of crude oil, contributing to a net reduction of 557 LMT of CO2 emissions over the past decade.
A Greener Future Ahead
The government’s aggressive push for ethanol blending is not only bolstering energy security but also paving the way for a cleaner and more sustainable future. With India aiming to achieve 20% ethanol blending by 2025, these measures showcase the nation’s commitment to mitigating climate change and reducing its carbon footprint.
This progress reinforces India’s leadership in adopting green fuel initiatives, setting a benchmark for other nations seeking energy transition solutions.
