India's ethanol blending program has emerged as a significant success story, with the nation saving an impressive US$ 11.80 billion (Rs. 99,000 crore) in foreign exchange since 2014. This achievement was highlighted by the Minister for Petroleum & Natural Gas, Mr. Hardeep Singh Puri, during his address at the International Conference on Bioenergy. The program, which aims to reduce India's dependence on crude oil imports, has already achieved a 15% ethanol blending target and is on track to increase this to 20% by the Ethanol Supply Year (ESY) 2025-26.

Mr. Puri emphasized that the increased use of ethanol in automotive fuels has allowed India to substitute 17.3 million metric tonnes of crude oil since the program's inception in 2014. This substitution has not only reduced the country's import bill but has also contributed to significant environmental benefits. The program has helped lower carbon emissions by 51.9 million metric tonnes over the past decade, showcasing India's commitment to sustainable energy solutions.

The financial benefits of the ethanol blending program extend beyond foreign exchange savings. Since 2014, cumulative payments made to distillers by oil marketing companies have amounted to US$ 17.29 billion (Rs. 1.45 trillion). This substantial financial outlay underscores the government's dedication to supporting the ethanol industry and ensuring a steady supply of this eco-friendly fuel. Additionally, the program has had a positive impact on the agricultural sector, with farmers receiving US$ 10.44 billion (Rs. 87,558 crore), providing them with a stable source of income.

The availability of E20 petrol (20% ethanol-blended petrol) has been expanding rapidly across the country. As of now, E20 petrol is available at over 15,600 outlets nationwide, making it increasingly accessible to consumers. The government has also launched E100 fuel in March 2024, which is ideal for high-performance engines due to its high-octane rating of 100-105. This move is expected to further drive the adoption of ethanol-blended fuels and reduce the reliance on fossil fuels.

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Looking ahead, the ethanol production in India is set to increase further. The government has resumed the supply of rice from the Food Corporation of India (FCI) to ethanol distilleries, allowing them to purchase up to 23 lakh tonnes through e-auctions from August to October 2024. This decision is expected to boost ethanol production and ensure that the country meets its ambitious blending targets.

Moreover, the government has introduced additional incentives to encourage ethanol production from various feedstocks. These incentives include an additional US$ 0.12 (Rs. 9.72) per litre for ethanol supplies from maize, US$ 0.10 (Rs. 8.46) per litre from damaged rice during August 2023, and US$ 0.082 (Rs. 6.87) per litre from C-heavy molasses during December 2023. These measures are designed to increase the availability of ethanol and ensure a steady supply for blending purposes.

The government's decision to allow the supply of sugarcane juice and syrup to ethanol distilleries starting from ESY 2024-25 (November 2024) is another significant step towards achieving the 20% blending target. By diversifying the feedstocks used for ethanol production, the government aims to create a more resilient and sustainable ethanol supply chain.

The success of India's ethanol blending program is a testament to the government's commitment to energy security and environmental sustainability. By reducing the country's dependence on crude oil imports and lowering carbon emissions, the program is helping to pave the way for a cleaner and greener future. The progress made so far is encouraging, but the journey towards achieving the 20% ethanol blending target by 2025-26 will require continued efforts and collaboration between the government, industry stakeholders, and farmers.

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