Archive · 11 Jun 2025
India's Ethanol Production Capacity Surges Under Modi Government
India has significantly increased its ability to produce ethanol, a fuel that can be mixed with gasoline.
Over the last 11 years, capacity has increased four times.
The government has supported this growth.
Mixing ethanol with gasoline helps the country save money, reduce pollution and provide boost to agriculture sector.
The government wants to blend even more ethanol into gasoline by 2025-26, using sources like sugarcane and grains.
India's ethanol production capacity has surged to 1,810 crore litres annually.
Ethanol blending in petrol reached nearly 19% in May 2024-25 ESY.
The government provided interest subsidies to encourage ethanol production.
The Ethanol Blended Petrol (EBP) Programme aims for 20% blending by 2025-26.
Ethanol is produced from sources like sugarcane and grains.
- Who
- Government and ethanol producers
- What
- India's ethanol production capacity has increased significantly.
- When
- Production capacity increased over the last 11 years.
- Where
- India
- Why
- To reduce import dependency, conserve foreign exchange, reduce carbon emissions, and provide boost to agriculture sector.
- Ethanol Production Capacity (2024)
- 1,810 crore litres annually
- Ethanol Blending (May 2024-25 ESY)
- 18.74%
- Target Blending (2025-26)
- 20%
- Source of Capacity
- Sugarcane, grain and dual feed
- Government Initiative
- Interest subvention schemes
Sources
TruAlt Bioenergy, An Ethanol Producer, Gets Oil Marketing Company Status
Ethanol production capacity jumps over 4-fold to 1,810 cr litres in 11 yrs of Modi govt: Official