Major Achievements of the EBP Programme
The Ethanol Blended Petrol (EBP) Programme has generated direct payments of more than ₹1.25 lakh crore to farmers between 2014-15 and July 2025. At the same time, it has saved over ₹1.44 lakh crore in foreign exchange, reduced net carbon dioxide emissions by nearly 736 lakh metric tonnes, and substituted more than 244 lakh metric tonnes of crude oil.
India met the 10% ethanol blending target in June 2022, five months ahead of schedule. The blending rate has risen steadily: 12.06% in 2022-23, 14.60% in 2023-24, and 19.05% as of July 2025 in the ongoing supply year. In July alone, blending peaked at 19.93%, moving closer to the government’s long-term 20% target.
Policy Push and Incentives
The government has expanded the range of feedstocks for ethanol production, fixed administered prices for ethanol procurement, and reduced the GST rate to 5% for ethanol used in the programme. Multiple interest subvention schemes since 2018 have supported new distilleries, including assistance to cooperative sugar mills for conversion into multi-feedstock plants capable of using molasses and grains.
Additionally, Public Sector Oil Marketing Companies (OMCs) have signed Long Term Offtake Agreements (LTOAs) with ethanol plants, introduced multimodal transportation for improved logistics, and boosted storage infrastructure across the country.
Advanced Biofuel Projects Under JI-VAN
Puri also informed Parliament that the Pradhan Mantri JI-VAN Yojana, launched in 2019 and revised in 2024, is driving advanced biofuel production from agricultural residues and lignocellulosic biomass. With a financial outlay of ₹1,969.50 crore, the scheme provides ₹1,800 crore for commercial-scale projects and ₹150 crore for demonstration units. The initiative also reduces stubble burning, offers farmers income from waste, and supports Swachh Bharat goals.
Biodiesel and Broader Biofuel Push
Beyond ethanol, the government is also encouraging biodiesel blending. Measures include indicative blending targets, simplified sales guidelines issued in 2019, and lowering GST on biodiesel procurement from 12% to 5%. These steps aim to strengthen India’s energy security while offering greener alternatives to conventional fuels.
Energy Security and Rural Empowerment
Puri underlined that India’s biofuel mission is not just about reducing oil imports but also about creating a sustainable rural economy. “The government remains committed to building a strong biofuel ecosystem that benefits farmers, protects the environment, and ensures long-term energy security,” he said.
