Why in the news?
Amid the nationwide rollout of E20 fuel (Ethanol Blending), concerns over reduced mileage and vehicle damage due to ethanol’s corrosive nature and lower energy content have emerged.
Introduction
(a) India’s move to energy independence as well as carbon mitigation has achieved a milestone with the national introduction of E20 fuel, petrol blended with 20% ethanol.
(b) The goal, which was initially targeted to be achieved by 2030, has been attained five years early in 2025.
(c) Although the shift increases energy security, benefits sugarcane growers, and reduces crude oil imports, it has caused worry among car owners and analysts over its impact on fuel efficiency, engine life, and maintenance in the long run.
Significance of Ethanol Blending
(i) Import Reduction: Ethanol blending reduces India’s dependency on crude oil imports. Also, ₹1.36 lakh crore was saved in foreign exchange through import substitution.
(ii) Lifecycle Emissions: 2G ethanol cuts GHGs by over 50% compared to petrol.
(iii) Farmer Income: Since 2014, farmers have received ~₹1 lakh crore through procurement transfers.
(iv) Agro Waste Utilisation: Promotes a circular economy by using stubble, dung, and biomass.
(v) Crop Diversification: Incentivises maize cultivation and reduces cane dependency.
(vi) Blending Buffer: Ethanol stockpiles offer blending flexibility to manage price shocks in crude oil.
Issues with Ethanol Blending
(i) Food–Fuel Conflict: Ethanol from foodgrains risks inflation as well as nutritional insecurity.
(ii) Water Intensity: Producing 1 litre of ethanol consumes ~3000 litres of water, raising groundwater stress.
(iii) Environmental Burden: Expansion risks deforestation, soil degradation, and monoculture.
(iv) Pollution Concerns: Ethanol plants emit acetaldehyde, release vinasse, and fail to curb nitrous oxide.
(v) Mileage Reduction: E10-E20 blends lower fuel efficiency by up to 7%, while E100 cuts it by nearly 30%.
(vi) Logistics Lag: Ethanol pipelines, storage, and rural blending depots remain inadequate.
(vii) Price Uncertainty: Irregular feedstock pricing lessens investor confidence in ethanol distilleries.
Non-Communicable Diseases (NCD) in India
Clean Energy Transition in India
Best NDA Coaching in Lucknow, India | Best NDA Coaching with Hostel
Download the Mobile App of Target Defence Academy
Challenges to India’s Ethanol Policy
(a) High dependence on sugarcane, which is water-intensive. Thus, a weak monsoon or erratic rainfall poses a great threat to the industry.
(b) Shortage of sugar for consumption.
(c) Lower calorific value: Pure ethanol has a lower calorific value than petrol, leading to an inverse correlation between vehicle mileage and the ethanol blend percentage.
(d) Vehicle health: Using ethanol-mixed petrol can lead to corrosion and rust in the fuel tank as it has high polarity and moisture affinity.
Government Initiatives for Ethanol Blending
(i) Ethanol blending programme: The EBP programme’s multiple objectives are reducing import dependence, savings in foreign exchange, providing a boost to the domestic agriculture sector and associated environmental benefits.
(ii) Blending Progress: Blending rose from 1.5% (2014) to 10% (2022) and 20% (2025).
(iii) E27 Target: India aims to reach 27% ethanol blending by 2030 with phased rollout support.
(iv) Nodal Ministry: The Ministry of Petroleum and Natural Gas oversees EBP with multi-ministry coordination.
(v) Labelling: petrol pumps and vehicles should display the level of ethanol blend to assure consumer awareness.
Other Government Initiatives
(i) Policy Backbone: National Biofuel Policy 2018 (amended in 2022) enables surplus foodgrain usage.
(ii) Loan Support: Ethanol Interest Subvention Scheme (EISS) offers 6% interest subsidy to new distilleries.
(iii) GST Reform: GST on blending ethanol was reduced from 18% to 5% to lower production costs.
(iv) E20 Compliance: All BS-VI petrol vehicles must meet E20 certification norms from April 2025.
Way Ahead
(i) E27 Rollout: Prepare roadmap for scaling up blending to 27% by 2030.
(ii) Maize Push: Increase MSP and acreage under maize to reduce foodgrain diversion.
(iii) 2G Expansion: Fast-track bamboo, bagasse, and stubble-based ethanol plants.
(iv) Water-Audit Mandate: Enforce water-use audits for all distilleries under CPCB norms.
(v) Balanced Allocation: Cap FCI foodgrain usage and incentivise non-edible feedstocks.
(vi) Vehicle R&D: Develop E20-E100 compliant engines with corrosion & mileage safeguards.
(vii) Global Partnerships: Collaborate with Brazil and Sweden for flex-fuel and lifecycle audit tech.
Conclusion
India’s ethanol blending program, of course, is encouraging, witnesses challenges in balancing food security, environmental sustainability, and economic viability. A holistic approach involving diverse feedstock, tech upgradations, and policy overhaul is essential to achieve sustainable success. India’s journey towards an energy-secure future depends on a well-planned and executed strategy.