Ethanol blending programme: Meeting target will be tough going

Although the country has made steady progress in raising the share of ethanol in auto-fuels, having increased it to 8.1% in Ethanol Supply Year (ESY) 2020-21 (December-November) from 5% a year earlier, several issues will need to be addressed if the target of 20% blending by 2025 is to be achieved, experts have said.

Prime Minister Narendra Modi had in June, 2021 advanced the target for achieving 20% ethanol blending to 2025 from 2030 earlier. India imported 185 MT of petroleum at a cost of $55 billion in FY21. Since most petroleum products are used in transport, a successful E20 (20% ethanol blended petrol) programme can potentially save the country $4 billion per annum. Around 16-18 MT of petrol sales is expected to be displaced by ethanol blending, analysts at Crisil have said.