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Ethanol Blending Programme (EBP)

Policy Framework

India's Ethanol Blending Programme was initiated in 2003 with a modest 5% blending mandate. The National Policy on Biofuels (2018, amended 2022) set the roadmap for 20% ethanol blending by 2025-26 (advanced from 2030). The Biofuels Policy categorises biofuels into First Generation (1G -- from food crops like sugarcane, maize, rice), Second Generation (2G -- from agricultural residue, municipal waste), and Third Generation (3G -- from algae). India achieved E20 in 2025. The government has now set a target of 27% blending (E27) by 2028.

Key details
  • EBP timeline: 5% mandate (2003) --> 10% target (2017) --> 20% achieved (2025) --> 27% target (2028)
  • National Policy on Biofuels: 2018 (original); 2022 amendment advanced E20 target to 2025-26
  • Administered price of ethanol: Rs 65.61/litre (sugarcane juice route); Rs 56.28/litre (C-heavy molasses)
  • Nodal ministry: Ministry of Petroleum and Natural Gas
  • Ethanol procurement: through Oil Marketing Companies (IOC, BPCL, HPCL) via open tenders
  • Inter-Ministerial Committee: oversees ethanol availability, pricing, and allocation
In the news

Tracked since February 14, 2026 · last seen June 13, 2026 · updates as the daily brief publishes

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