Rama Krishna Sangem
Union Minister Nitin Gadkari has announced that the government will introduce norms for 27% ethanol blending in petrol by the end of August. This is in line with Brazil’s practice, where ethanol blend in gasoline is 27%. Current Status: India’s Achievement: India has already reached its target of 20% ethanol blending. Automobile Compatibility: Existing engines can run on E20 with minor modifications to prevent corrosion.
E27 Norms: There are currently no standard norms for E27 fuel in India, but they are expected to be finalized by the end of August. Reasons for Ethanol Blending – India is heavily reliant on imports, with 85% of its oil needs being met through imports. The country imports fossil fuels worth ₹22 lakh crore, contributing to pollution. There is a need to diversify agriculture towards the energy and power sector to reduce dependency on fossil fuels.
The Government has been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme wherein Public Sector Oil Marketing Companies (OMCs) sell ethanol blended with petrol. During the ongoing ESY 2024–25, OMCs have achieved an average ethanol blending of 19.05% as on 31.07.2025. In the month of July 2025, Ethanol blending of 19.93% has been achieved.
In order to ensure availability of feedstock for ethanol production to achieve 20% Ethanol blending target by the Ethanol Supply Year (ESY) 2025-26, the Government have taken several steps which inter-alia includes:
Development of Maize Cluster around ethanol plants by Department of Agriculture and Farmers Welfare (DAFW) and a Project by ICAR-Indian Institute of Maize Research (IIMR) titled “Enhancement of maize production in catchment areas of ethanol industries” to increase the production of maize in catchment area of grain-based distilleries.
Approval by Government for allocation of 52 Lakh Metric Tonne (LMT) of surplus Food Corporation of India (FCI) rice for ethanol production, each for the ESY 2024-25 (from 1st November 2024 to 31st October 2025) and ESY 2025-26 up to 30.06.2026. Diversion of 40 LMT of sugar for ethanol production allowed for the ESY 2024-25.
Lower GST at 5 pc
To boost ethanol production as well as supply in the country, Government introduced administered price mechanism for Ethanol procurement under the Ethanol Blended Petrol (EBP) Programme, lowered GST rate to 5% for Ethanol for EBP Programme, introduced various Ethanol Interest Subvention Schemes (EISS) during 2018-22 for Ethanol production from molasses as well as grains, a dedicated subvention scheme for Cooperative Sugar Mills to convert
