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Ethanol Blending in India: E20 Milestone and Concerns

5 August 20251 min read
AGRICULTURE & RURALEthanol Blendingin India: E20Milestone andConcerns5 August 2025safalsetu.com

Why in the news

India hit 20% ethanol blending early, boosting cleaner fuel and self-reliance but raising engine and supply worries.

MilestoneYear
EBP launched2003
E102022
E20March 2025
E30 target2030

Policy support

  • National Policy on Biofuels (2018) allowed varied feedstocks such as sugarcane juice, FCI surplus grains and rotten potatoes.
  • GST cut from 18% to 5%; fixed OMC prices; capital support and interest subvention for distilleries.
  • PM-JI-VAN promotes 2G ethanol; India leads the Global Biofuels Alliance.

Concerns

  • Ethanol absorbs water, so metal corrodes and rubber, plastic and fuel systems suffer.
  • Lower energy density cuts mileage.
  • Most vehicles, especially two-wheelers, suit E10; flex-fuel and retrofit norms are missing.
  • Cold starts are harder in older engines.
  • Retailers need upgraded storage; heavy sugarcane and maize use risks food security. SIAM seeks clarity and incentives.

Way forward

  • Scale up 2G bioethanol from crop waste.

Exam angle

  • Programme: EBP.
  • 2018 policy: National Policy on Biofuels.
  • Alliance: GBA.

Test yourself

1. In which year did India launch the Ethanol Blended Petrol (EBP) Programme?

The EBP Programme was launched in 2003.

2. To what level was GST on ethanol reduced from 18%?

GST was cut from 18% to 5%.

3. Which scheme promotes 2G ethanol from rice straw and agricultural residues?

PM-JI-VAN promotes 2G ethanol from rice straw and agri-residues.