KartavyaDesk
news

Ethanol Blending Program

Kartavya Desk Staff

  • Syllabus: Science and Technology, Energy *
  • Source: PIB*

Context: India’s rising energy demands and dependency on imported oil have led the government to focus on sustainable alternatives like ethanol blending. This initiative, which aims to reduce fossil fuel use and carbon emissions, is a major step toward energy security.

About Ethanol Blending Program:

Origin: Launched in 2003 as a pilot project, ethanol blending was formalized through the Ethanol Blended Petrol (EBP) program to support energy needs and environmental goals.

Aim: Reduce reliance on imported oil, improve energy security, lower carbon emissions, and boost rural income by supporting sugarcane farmers.

Target: Achieve 20% ethanol blending in petrol by 2025, advancing the original target of 2030 in response to increased capacity and demand.

Ministry: Led by the Ministry of Petroleum and Natural Gas, with support from the Department of Food and Public Distribution and Ministry of Environment, Forest, and Climate Change for sustainable biofuel production and integration into the energy landscape.

Key achievements:

Ethanol blending growth: Ethanol blending has surged from 1.53% in 2014 to 15% in 2024. The government is targeting 20% blending by 2025.

Increased ethanol production capacity: Ethanol production capacity has more than doubled in four years, reaching 1,623 crore litres in 2024.

Foreign exchange savings: The program has saved ₹1,06,072 crore in foreign exchange and reduced CO₂ emissions by 544 lakh metric tons.

Economic impact: Oil Marketing Companies (OMCs) have paid ₹1,45,930 crore to ethanol distillers and ₹87,558 crore to farmers, promoting rural prosperity.

Challenges:

Feedstock availability: Limited feedstock options, such as sugarcane, restrict the scale of ethanol production.

Infrastructure gaps: Insufficient infrastructure for ethanol storage, transportation, and blending poses logistical challenges.

Technological constraints: Need for technology advancements in ethanol production to ensure efficient use of diverse feedstocks, including lignocellulosic biomass.

Regulatory and inter-state barriers: Variations in state regulations and taxation can hinder smooth ethanol trade across state borders.

Key measures:

Pradhan Mantri JI-VAN Yojana (Modified): Expanding the scope to include advanced biofuels and extending the timeline till 2028-29.

Roadmap for blending: A comprehensive plan for achieving 20% ethanol blending by 2025, ensuring efficient implementation.

Tax reductions: GST on ethanol reduced to 5%, making it financially attractive for producers and consumers.

Interest subvention: Subsidies provided to enhance ethanol production capacity.

Free movement of ethanol: Changes in regulations to facilitate smooth inter-state movement of ethanol.

Conclusion:

India’s commitment to ethanol blending represents a transformative approach to energy security, environmental sustainability, and economic development. With a significant increase in ethanol production capacity and blending percentages, the government is making substantial strides towards its ambitious target of 20% blending by 2025.

Insta Links:

Ethanol-blending-programme-in-India

Ethanol-a-savior-that-gives-savings

• According to India’s National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels? (UPSC-2020)

• Damaged wheat grains

• Groundnut seeds

• Horse gram

• Rotten potatoes

• Sugar beet

Select the correct answer using the code given below:

(a) 1, 2, 5 and 6 only (b) 1, 3, 4 and 6 only (c) 2, 3, 4 and 5 only (d) 1, 2, 3, 4, 5 and 6

Answer: a)

• Given below are the names of four energy crops. Which one of them can be cultivated for ethanol? (UPSC-2010)

(a) Jatropha (b) Maize (c) Pongamia (d) Sunflower

Answer: b)

AI-assisted content, editorially reviewed by Kartavya Desk Staff.

About Kartavya Desk Staff

Articles in our archive published before our editorial team was expanded. Legacy content is periodically reviewed and updated by our current editors.

All News