The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a revision of ethanol procurement prices for the Ethanol Blended Petrol (EBP) Programme for the Ethanol Supply Year (ESY) 2024-25, running from 1 November 2024 to 31 October 2025.
Under the revised rates, the ex-mill price of ethanol derived from C Heavy Molasses (CHM) has been increased by 3%, now fixed at ₹57.97 per litre, compared to ₹56.58 per litre previously. This price adjustment aims to ensure adequate ethanol availability for achieving the 18% blending target during the ongoing ESY 2024-25.
Significant Outcomes of the EBP Programme
The Ethanol Blended Petrol Programme promotes the use of environmentally friendly fuels while reducing dependency on crude oil imports. Key benefits include:
- Foreign exchange savings exceeding ₹1,13,007 crore over the past decade.
- Crude oil substitution of approximately 193 lakh metric tonnes.
- Support for sugarcane farmers through timely payments and incentivized ethanol production.
The government is advancing its target of 20% ethanol blending in petrol to 2025-26 (earlier planned for 2030), supported by the “Roadmap for Ethanol Blending in India 2020-25.”
Recent Developments and Investments
- Enhanced ethanol distillation capacity to 1713 crore litres per annum.
- Introduction of E-100 and E-20 fuel along with flex-fuel vehicles.
- Establishment of Dedicated Ethanol Plants (DEPs) and multi-feed distilleries.
These initiatives have spurred investments across the country, boosting greenfield and brownfield distilleries, storage networks, logistics, and employment opportunities. This aligns with the vision of Atmanirbhar Bharat, fostering energy self-reliance.
Also Read: The Future of Crude Oils: Transitioning to a Sustainable Tomorrow
Key Achievements in Ethanol Blending
The ethanol blending rate has surged from 14.60% in ESY 2023-24, with procurement volumes increasing from 38 crore litres in 2013-14 to 707 crore litres. These achievements underscore the government’s commitment to sustainability and reduced import dependence.
By supporting stakeholders across the ethanol supply chain, the EBP Programme is paving the way for quantifiable environmental and economic gains while enhancing the ease of doing business.
Source: PIB
