Explained: What does the govt’s move to increase bioethanol in petrol mean?

News: The government has set targets of 10% bioethanol blending of petrol by 2022 and to raise it to 20% by 2030 under the Ethanol Blended Programme (EBP).


  • Ethanol Blended Petrol(EBP) programme: It was launched in 2003 by the Ministry of Petroleum & Natural Gas (MoP&NG).
  • Aim: To achieve blending of Ethanol with Petrol with a view to reduce pollution, conserve foreign exchange and increase value addition in the sugar industry enabling them to clear cane price arrears of farmers.
  • Implementation: The Government is implementing the programme through Oil Marketing Companies (OMCs).

Additional Facts:

  • 1G and 2G Bioethanol: 1G bioethanol plants utilise sugarcane juice and molasses, byproducts in the production of sugar as raw material while 2G plants utilise surplus biomass and agricultural waste to produce bioethanol.
  • Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana: It was launched in 2019 to provide financial support to Integrated Bioethanol Projects using lignocellulosic biomass and other renewable feedstock.