An overview of Ethanol Blending in India The energy demand in our country is rising due to an expanding economy, growing population, increasing urbanization, evolving lifestyles and rising spending power. About 98% of the fuel requirement in the road transportation sector is currently met by fossil fuels and the remaining 2% by biofuels. Today, India imports 85% of its oil requirement. The Indian economy is expected to grow steadily despite temporary setbacks due to the COVID pandemic. This would result in a further increase of vehicular population which in turn will increase the demand for transportation fuels. Domestic biofuels provide a strategic opportunity to the country, as they reduce the nation’s dependence on imported fossil fuels. In addition, when utilized with appropriate care, biofuels can be environmentally friendly, sustainable energy sources. They can also help generate employment, promote Make in India, Swachh Bharat, doubling of farmers’ incomes and promote Waste to Wealth generation. Ethanol is one of the principal biofuels, which is naturally produced by the fermentation of sugars by yeasts or via petrochemical processes such as ethylene hydration. It has medical applications as an antiseptic and disinfectant. It is used as a chemical solvent and in the synthesis of organic compounds, apart from being an alternative fuel source. 1.3 The National Policy on Biofuels – 2018, provides an indicative target of 20% ethanol blending under the Ethanol Blended Petrol (EBP) Programme by 2030. Currently petrol with 10% ethanol blend (E10) is being retailed by various Oil Marketing Companies (OMCs) in India, wherever it is available.

However, as sufficient quantity of ethanol is not available, therefore, only around 50% of petrol sold is E10 blended, while remaining is unblended petrol (E0). The current level of average ethanol blending in the country is 5% (Ethanol Supply Year 2019-20). Due to several interventions in the supply side of ethanol, the Ministry of Petroleum aims to achieve 10% ethanol blending levels in the Ethanol Supply Year (ESY) – 2021-22 i.e. April, 2022. This step along with achieving E20 targets will require emission norms for nationwide standardization and adoption. The MoRT&H has notified BSVI emission norms in Central Motor Vehicle Rules 1989 which are applicable to all vehicles post 1st April 2020. Newer vehicles on E-20 will have to meet BS-VI norms. MoRT&H has notified GSR 156(E) on 8th March 2021 for adoption of E20 fuel as automotive fuel and issued mass emission standards for it. MoRT&H has also notified Safety standards for ethanol blended fuels vide GSR 343(E) dated 25th May, 2021 on the basis of Automotive Industry Standard 3 (AIS 171). It lays down safety requirements for type approval of pure ethanol, flex-fuel & ethanol-gasoline blended vehicles in India. Currently the gasoline vehicles (2 wheelers & 4 wheelers) in the country are designed for running on pure gasoline and can be tuned to suit ethanol blended fuels ranging from E0 to E5 depending on the vehicle type. On the material compatibility front, the rubber and plastic components are compatible with E10.

However, with the proposed target of E20, the vehicles are now required to become both material compatible and tuned for use of E20 fuel. By taking into consideration the limitation of ethanol production from traditional C-Heavy molasses route and its competitive usage in potable and chemical sectors, the Central Government has allowed other sugarcane and food grain-based raw materials for ethanol production in line with the National Policy on Biofuels, 2018. Besides, the entire supply chain and logistics of OMCs needs to be augmented to store, handle and dispense E20 blends. As per the decision of the CCEA in its meeting of 21.12.2020, the Government aims to advance adoption of 20% blending in gasoline in the country by 2025. Accordingly, MoP&NG, DFPD, DHI and MoRT&H have worked out a plan to achieve this target. 1.2. Ethanol Blending Programme in India With a view to give a boost to the agriculture sector and to reduce environmental pollution, the government of India had launched pilot projects in 2001 wherein, 5% ethanol blended petrol was supplied to retail outlets. Apart from field trials, R&D studies were also simultaneously conducted. The success of these field trials and studies paved the way for EBP in India. The Government of India vide its resolution dated 3rd September, 2002 decided to launch Ethanol Blended Petrol (EBP) Programme in January, 2003 for sale of 5% ethanol blended Petrol in nine States and four UTs. Based on these promising experiences, the MoP&NG vide its notification dated 20th September, 2006 extended the 5% Ethanol Blended Petrol to twenty States and four UTs of the country with effect from 1st November, 2006. Public Sector Oil Marketing Companies (OMCs) were asked to sell 5% ethanol blended petrol subject to commercial viability as per Bureau of Indian Standards (BIS) specifications in the notified states and UTs.