India’s Ethanol Revolution: Paving the Way for Global Leadership

(Cover image for representational purposes only)

By Ratan Mani Lal: India is making rapid strides toward cleaner, more sustainable energy solutions. With the Ethanol Blended Petrol (EBP) Programme, the country is reducing its dependence on crude oil imports and emerging as a global leader in biofuels. Initially setting a target of 20% ethanol blending in petrol by 2030, India has accelerated its efforts and aims to achieve this milestone by 2025.

India’s ethanol blending journey began in 2001 when sugarcane-derived ethanol was introduced as a fuel additive. However, progress was slow due to limited production capacity and supply chain constraints. The game-changer came with introducing the EBP Programme, which provided a structured approach to ethanol procurement, policy incentives, and investment in biofuel infrastructure.

Since 2019, ethanol blending levels have risen from 5% to 14.6% in 2023-24, and in January 2025, India achieved a record ethanol blending rate of 19.6% in petrol - the highest to date. The volume of ethanol-blended petrol for public sector Oil Marketing Companies (OMCs) has also increased from 3,413 crore litres in ESY 2019-20 to an estimated 4,828 crore litres in ESY 2023-24.

While India’s ethanol production was historically dependent on sugarcane, the focus has shifted to grain-based ethanol to ensure a steady and diversified supply. Ethanol procurement from grain-based sources under the EBP Programme increased from 9.51 crore litres in ESY 2018-19 to 70.21 crore litres in ESY 2021-22. By 2023-24, grain-based ethanol accounted for 51% of total ethanol procurement, with maize alone contributing 110.87 crore litres.

This shift is crucial for India to maintain year-round ethanol production while supporting farmers by providing a market for surplus grains.

The ethanol blending initiative has had tremendous economic benefits, including:

• Foreign exchange savings of ₹1,08,655 crore between 2013-14 and 2023-24 by reducing crude oil imports.

• CO₂ emissions reduction of 557 lakh metric tonnes, contributing to India’s sustainability goals.

• Crude oil substitution of approximately 185 lakh metric tonnes, decreasing India’s reliance on fossil fuels.

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Additionally, the ethanol industry has created new opportunities for farmers, ensuring that surplus crops are utilized efficiently and reducing wastage.

India’s rapid progress in ethanol blending is now being recognized globally. In September 2023, Prime Minister Narendra Modi launched the Global Biofuels Alliance, an initiative to foster international ethanol production and trade cooperation. This move strengthens India’s position in global energy discussions and encourages other nations to adopt ethanol-based fuel solutions.

To meet the 20% blending target by 2025, India requires approximately 1,016 crore litres of ethanol, with an overall production capacity of 1,700 crore litres. With strategic policy interventions, increased infrastructure investments, and global collaborations, India is on track to achieve this goal.

By spearheading the ethanol revolution, India is ensuring energy security and positioning itself as a leader in the global biofuel movement, setting an example for nations worldwide.

(The author is a veteran journalist, political commentator and expert speaker)

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