India Targets 30% Ethanol-Petrol Blend by 2030

India is undertaking an audacious initiative targeting an increase in ethanol blending with petrol to 30% by 2030, aiming to eventually lower dependence on fossil fuel and, hence, carbon emissions. Sugarcane-based ethanol is an important ingredient for this green transition. The government’s Ethanol Blended Petrol (EBP) scheme aims to facilitate this transition, providing energy security while aiding farmers.

The Energy Goals Boosted by Ethanol Blending

The EBP program is accelerating the energy transition in India. A target of 20% ethanol blending was set for 2030, but the program met with early success. From March 2025, filling stations across the country started giving E20 fuel, comprising 20% ethanol and 80% petrol. Consequently, the new target of 30% blending by 2030 was established by the government. Foreign exchange savings and the reduction of oil imports are achieved through this shift. For example, it has saved over ₹1,13,007 crore in foreign exchange during the 2024 financial year.

Ethanol production is also a boon for rural economies. Farmers obtain an income from crops like sugarcane and maize. Deepak Ballani, who hails from the Indian Sugar & Bio-energy Manufacturers Association, stated that blending was able to reach 19-20% in 2025, five years ahead of the schedule. That encouraged the target of 30% approved by inter-ministerial consensus.

Vehicle Compatibility and Challenges

Most old vehicles in India can now accept E20 fuel. Major manufacturers, such as Hyundai, which produces the Creta SUV, are now producing E20-compliant engines. Higher ethanol blends like E30 pose challenges, though. Firstly, the corrosive nature of ethanol could degrade the fuel system components, like tanks and seals, on older vehicles. Secondly, fuel consumption might reduce significantly with blends above 25%.

Also Read about Delhi’s EV Policy 

The government has proposed a phased rollout of E30. Experts call for modifications to engines to ensure that the performance is maintained. In the meantime, the introduction of grain-based ethanol, such as from maize, raises serious food security concerns. The increase in maize imports in 2024 strengthens the argument for trade-offs. However, industry heads argue that any risk is overshadowed by surplus grain stocks.

Environmental Benefits and Other Economic Benefits

Ethanol burns cleaner than petrol and cuts down carbon emissions to a fair extent. Studies have shown that emissions of CO can be reduced by 30-50% and those of hydrocarbons by 20% due to blending. Besides, it also helps in bringing down the oil import bill for India, which was $125 billion in 2022-23. The expected savings from a 30% blend financially run to billions every year by 2030.

The ethanol industry also creates jobs and fosters rural development. Production is incentivized through financial measures like a reduction of GST on ethanol from 18% to 5%. Currently, the government supports the establishment of second-generation (2G) bio-refineries based on agro-waste for increased sustainability. Indian Oil and Praj Industries are engaged in the collaborative production of biofuels such as ethanol and compressed bio-gas.

Prospective Ethanol Conditions in India

In a further step into the future, India stands at a critical point where energy objectives start running into realities. For instance, the 30% calling on which the country should build its ethanol production needs to stretch as high as 1,000 crore litres by 2025-26 for E20 alone. The grain-based distilleries will have to scale up from 258 to 740 crore litres by 2026. Meanwhile, the Pradhan Mantri JI-VAN Yojana gives a great advantage through having this policy fund bio-ethanol projects.

However, there can be drawbacks. Such as the failure of monsoons, like in 2023, reduced sugarcane and rice production. This has tricks on the supplies of ethanol. In response to this, the government is promoting ethanol from maize. But this will drain tobacco-based imports on corn. In spite of these hurdles, India’s ethanol drive promises a greener and self-reliant future.

Source: India Today

The information provided in this article is sourced from the internet and may change; we strongly recommend verifying all details, including prices and specifications, with your nearest CAR Motors Dealer or customer care before making any decisions.

For more automobile news, Follow AutomobilIndia and stay updated!!