New Delhi, Dec 18 More than 1,000 crore litres of ethanol have been blended during the Ethanol Supply Year (ESY) 2024-25, thereby achieving an average blending of 19.24 per cent ethanol in petrol, while in October, ethanol blending of 19.97 per cent has been achieved, the Parliament was informed on Thursday.
The National Policy on Biofuels–2018, as amended in 2022, advanced the target of 20 per cent blending of ethanol in petrol from 2030 to Ethanol Supply Year 2025-26 (November 1, 2025 to October 31, 2026).
"Public Sector Oil Marketing Companies (OMCs) achieved the target of 10 per cent ethanol blending in petrol in June 2022 -- five months ahead of the target during ESY 2021-22, 12.06 per cent in ESY 2022-23 and 14.60 per cent in ESY 2023-24," Union Minister of State for Petroleum and Natural Gas, Suresh Gopi, told the Rajya Sabha in a written reply to a question.
In order to ensure consistent availability of feedstock and infrastructure for ethanol production in the country, the government has taken several steps which includes expansion of feedstock for ethanol production, administered price mechanism for Ethanol procurement under the Ethanol Blended Petrol (EBP) programme, lowered GST rate to 5 per cent for ethanol for EBP programme, and introduction of various ethanol Interest Subvention Schemes (EISS), among others.
The government also allocated 52 Lakh Metric Tonne (LMT) of surplus Food Corporation of India (FCI) rice for ethanol production, each for the ESY 2024-25 (from November 1, 2024 to October 31, 2025) and ESY 2025-26, along with diverting 40 LMT of sugar for ethanol production for the ESY 2024-25 and unrestricted production of ethanol from sugarcane juice/sugar syrup, B-Heavy Molasses as well as C-Heavy Molasses for ESY 2025-26.
The government had notified the "Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana 2019", amended in 2024, with the objectives to establish advanced biofuels, including Sustainable Aviation Fuel projects in the country using lignocellulosic biomass and other renewable feedstocks.
"Under this scheme, the maximum financial assistance of Rs 150 crore per project for commercial scale projects and Rs 15 crore per project for demonstration scale projects have been prescribed," the minister said.
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