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24th July 2025 (15 Topics)

India Achieves E20 Petrol Target Ahead of Deadline

Context

India has achieved 20% ethanol blending in petrol (E20) by 2025, five years ahead of the original 2030 target, prompting discussions on moving towards E27 and E85 grades and corresponding policy and automotive adaptations.

Ethanol Blending Programme (EBP):

  • Ethanol blending involves mixing ethanol, a biofuel primarily derived from sugarcane or biomass, with petrol.
  • The National Policy on Biofuels (2018) had set a target of 20% ethanol blending by 2030. India has now achieved this target by 2025, significantly ahead of schedule.

Grades of Blending:

  • E20: 20% ethanol + 80% petrol – now commercially implemented across India.
  • E27: Proposed to be introduced by 2030.
  • E85: High-blend ethanol fuel (85% ethanol) for flex-fuel vehicles – Government has notified draft rules for manufacturing such vehicles.

Automotive and Fuel Compatibility:

  • Older vehicles may not be compatible with E20 or higher blends.
  • Society of Indian Automobile Manufacturers (SIAM) has indicated readiness with engine modifications.
  • Companies like Maruti Suzuki, Hyundai, Tata Motors, and Mahindra have showcased flex-fuel vehicles.

Economic and Environmental Impact:

  • As per the Ministry of Petroleum and Natural Gas, between 2014 and July 2021:
  • India saved ?26,000 crore in foreign exchange.
  • Reduced GHG emissions by 19.2 million tonnes.
  • However, ethanol from sugarcane increases stress on water and land.
  • Environmentalists advocate the use of lignocellulosic biomass (e.g., crop residue, wood chips) for second-generation ethanol production.

Challenges and Concerns:

  • Lower energy content in ethanol ? Reduced mileage.
  • No proportional fuel price reduction despite import savings.
  • Concerns about engine wear and lack of fuel cost benefits to consumers.
  • Ethanol production from sugarcane may exacerbate water scarcity and impact food security.

Institutional and Policy Framework:

  • MoPNG (Ministry of Petroleum and Natural Gas): Nodal agency for ethanol blending implementation.
  • NITI Aayog: Policy think tank advocating balanced approach, including second-generation ethanol.
  • Ministry of Road Transport and Highways: Notified draft changes to Central Motor Vehicle Rules (1989) for flex-fuel engine compliance.
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