Context: During Question Hour in Parliament, the Union Minister for Road Transport and Highways highlighted the environmental and economic gains achieved under India’s Ethanol Blended Petrol (EBP) Programme, particularly after achieving the 20% blending target in 2025, five years ahead of schedule.
What is the EBP Programme?
The Ethanol Blended Petrol Programme is a Central Sector scheme under the Ministry of Petroleum and Natural Gas (MoPNG) aimed at blending ethanol with petrol to reduce fossil fuel dependence, cut emissions, and enhance farmer incomes.
Launched in 2003, the programme initially struggled due to supply constraints but gained momentum after policy reforms post-2014. Ethanol is sourced from sugarcane juice, B-heavy molasses, FCI surplus rice, maize, and damaged food grains, with production overseen by the Department of Food and Public Distribution.
Environmental and Economic Benefits
- Emission Reduction: Achieving 20% ethanol blending has reduced carbon dioxide emissions by 736 lakh metric tonnes, supporting India’s climate commitments.
- Energy Security: Ethanol blending substituted over 260 lakh metric tonnes of crude oil between 2014 and 2025, lowering vulnerability to global oil price shocks.
- Forex Savings: Reduced crude imports resulted in foreign exchange savings of over ₹1.55 lakh crore.
- Investment Mobilisation: Expansion of distillery capacity attracted investments exceeding ₹40,000 crore, strengthening biofuel infrastructure.
- Rural Income Support: Ethanol feedstock procurement has transferred over ₹1.36 lakh crore to farmers, boosting rural livelihoods.
Emerging Environmental and Economic Challenges
Despite its gains, ethanol blending poses significant sustainability concerns:
- Water Stress: Producing one litre of ethanol from sugarcane consumes nearly 2,860 litres of freshwater, raising concerns in water-stressed regions.
- Industrial Pollution: Ethanol distilleries generate spent wash, a toxic and highly polluting effluent requiring strict treatment.
- Import Dependence: Rising ethanol demand has shifted India from a maize exporter to an importer, with ~1 million tonnes imported in 2024–25.
- Food Inflation: Increased demand for maize led to 65–70% price rise, impacting food and feed markets.
- Air Toxicity: Ethanol combustion emits acetaldehyde and formaldehyde, posing public health risks.
- Vehicle Efficiency Loss: Lower energy density results in 5–20% mileage reduction.
- Material Corrosion: Ethanol’s hygroscopic nature can damage fuel lines and seals over prolonged use.
Way Forward
Balancing climate benefits with sustainability requires water-efficient feedstocks, stricter effluent standards, vehicle compatibility upgrades, and region-specific blending strategies.