India has reached a major clean energy milestone by achieving 20% ethanol blending in petrol in 2025, five years ahead of the original 2030 target. This early accomplishment marks a significant step in the country’s efforts to reduce dependency on fossil fuels, enhance energy security, and support rural economies.
The ethanol blending program, which began with a blending level of just 1.5% in 2014, has seen rapid growth over the past decade. With coordinated efforts from the government, oil marketing companies, and the agricultural sector, ethanol production has grown exponentially. As a result, India has managed to drastically cut crude oil imports, saving over ₹1.3 lakh crore in foreign exchange, while generating substantial revenue for distilleries and boosting the income of sugarcane farmers.
In addition to its economic impact, the ethanol initiative has played a key role in India’s environmental goals. The shift toward biofuels has helped avoid nearly 700 lakh tonnes of carbon dioxide emissions so far, making it one of the country’s most effective climate action strategies.
The ethanol used in blending primarily comes from sugarcane-derived molasses, benefiting farmers in major sugar-producing states such as Uttar Pradesh, Maharashtra, and Karnataka. With government incentives and rising procurement prices for ethanol, the program has turned into a win-win model for both clean energy expansion and rural development.
Union Petroleum and Natural Gas Minister Hardeep Singh Puri hailed the achievement as a testament to Prime Minister Narendra Modi’s vision for a self-reliant and sustainable energy future. He also emphasized that the success of the Ethanol Blended Petrol (EBP) program showcases India’s ability to meet ambitious goals ahead of time with the right policy direction.
Looking ahead, the government is now exploring higher blending targets, with discussions underway to push toward 27% ethanol in petrol in the coming years. If realized, this next phase could further reduce emissions, strengthen the domestic biofuel ecosystem, and place India among the world’s top leaders in clean fuel adoption.
