India Advances Ethanol Blending Target To 2025-26, Boosting Farmer Income And Energy Security


(MENAFN- KNN India) New Delhi, Nov 29 (KNN)
The government of India has accelerated its ethanol blending target under the Ethanol Blended petrol (EBP) Programme, advancing the 20 per cent blending goal from 2030 to Ethanol supply Year (ESY) 2025-26.

Minister of State for petroleum and Natural Gas, Suresh Gopi, informed the Lok Sabha that the initiative is projected to generate over Rs 35,000 crore annually for farmers.

The EBP Programme has consistently surpassed milestones, with ethanol blending rising
from 12.06
per cent in ESY 2022-23 to 14.6 per cent in ESY 2023-24.

The programme achieved 10 per cent blending in June 2022, five months ahead of schedule during ESY 2021-22. Over the past decade, it has facilitated payments of Rs 92,409 crore to cane farmers, helping sugar mills reduce surplus inventory.

The programme has delivered substantial economic and environmental benefits. Ethanol blending has saved Rs 1,08,655 crore in foreign exchange as of September 2024, substituted 185 lakh metric tonnes (LMT) of crude oil, and cut net CO2 emissions by 557 LMT over the last decade.

To support these goals, the government has broadened ethanol production feedstocks, implemented a pricing mechanism for cane-based ethanol, and reduced GST on ethanol to 5 per cent.

Ethanol Interest Subvention Schemes (2018-2022) and long-term offtake agreements between public sector oil marketing companies (OMCs) and ethanol plants have further strengthened the supply chain.

Ethanol supply to OMCs has more than doubled over the past ten years, increasing from 2506 crore litres in ESY 2013-14 to an estimated 4828 crore litres in ESY 2023-24. Correspondingly, the blending percentage has surged
from 1.53
per cent in 2013-14 to 14.6 per cent currently.

This push for increased ethanol use aligns with India's broader energy transition strategy, aiming to enhance energy security, reduce reliance on crude oil imports, and lower environmental impacts.

By advancing the 20 per cent blending target to 2025-26, the government underscores its commitment to sustainable development while delivering significant economic benefits to the agricultural sector.

(KNN Bureau)

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