Highlighting the success of India’s ethanol blending programme, Union Minister for Petroleum & Natural Gas Hardeep Singh Puri said here on Monday that since its inception, the ethanol blending percentage has surged from 1.53% in 2014 to 15% in 2024.

While speaking at the inaugural session of the India Bio-Energy & Tech Expo 2024 (IBETE), the minister said that buoyed by the progress, the government has set an ambitious target of reaching 20% blending to be achieved by 2025 and is confidently progressing towards it.

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“Over the past decade, this initiative has delivered significant benefits, including saving Rs 99,014 crore in foreign exchange, reducing CO2 emissions by 519 lakh metric tons, and substituting 173 lakh metric tons of crude oil,” the minister said.

Furthermore, the programme has had a considerable economic impact with Oil Marketing Companies disbursing Rs 1,45,930 crore to distillers and Rs 87,558 crore to farmers, he added.

The minister also presented a detailed account of India’s progress in the bio-energy sector and its critical role in the country’s energy transformation.

Puri emphasised that bio-energy is increasingly becoming a crucial alternative to fossil fuels, offering both environmental benefits and economic opportunities, particularly in rural areas.

He also highlighted the widespread availability of E20 fuel, which is now offered at over 15,600 retail outlets across India.

He commended the Pradhan Mantri JI-VAN Yojana for its essential role in providing financial support to advanced biofuel projects, which is crucial for developing a sustainable ethanol production ecosystem.

The minister said that to further support the ethanol industry, the government has introduced various incentives for ethanol production.

These include Rs 9.72 per litre for ethanol derived from maize, Rs 8.46 per litre for ethanol from damaged rice, and Rs 6.87 per litre for ethanol from C-heavy molasses.

These incentives have significantly boosted maize’s contribution to ethanol production, which rose to 36% in the 2023-24, Ethanol Supply Year (ESY) from a mere 0% in 2021-22, he said.

A major milestone in ethanol fuel expansion was highlighted by the petroleum minister with the successful launch of E100 fuel at over 400 retail outlets across the country.

Puri urged Minister of Road Transport & Highways Transport Nitin Gadkari to encourage automobile manufacturers to produce vehicles compatible with E100 fuel.