New Delhi: Ethanol blending in petrol has reached 19.05 per cent as on July 31, 2025, under the Ethanol Blended Petrol (EBP) Programme, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said in the Lok Sabha.
In a written reply to a starred question, Puri said ethanol blending in July 2025 alone stood at 19.93 per cent.
He said the programme has resulted in payments of over ₹1,25,000 crore to farmers between Ethanol Supply Year (ESY) 2014-15 and July 2025. It has also led to savings of more than ₹1,44,000 crore in foreign exchange, net CO2 reduction of about 736 lakh metric tonnes and substitution of over 244 lakh metric tonnes of crude oil.
Public sector oil marketing companies had achieved the target of 10 per cent ethanol blending in June 2022, five months ahead of schedule during ESY 2021-22. The blending level increased to 12.06 per cent in ESY 2022-23, 14.60 per cent in ESY 2023-24 and 19.05 per cent so far in the ongoing ESY 2024-25.
To support ethanol production, the government has expanded feedstock availability, introduced an administered price mechanism for procurement, reduced GST on ethanol used in the programme to 5 per cent and rolled out interest subvention schemes.
On advanced biofuels, Puri said the Pradhan Mantri JI-VAN Yojana, notified in 2019 and amended in 2024, has a financial outlay of ₹1,969.50 crore, including ₹1,800 crore for commercial-scale projects and ₹150 crore for demonstration-scale projects.
The minister said the government has also taken steps to promote biodiesel, including prescribing indicative blending targets and reducing GST on biodiesel procurement from 12 per cent to 5 per cent.
“The Government is fully committed towards strengthening the biofuel ecosystem in the country to ensure energy security, reduce crude oil imports, support farmers, and promote environmental sustainability,” Puri said.
