Centre Says No State-wise Ethanol Blending Targets Set

The central government has not set ethanol blending targets for individual states, the Ministry of Petroleum and Natural Gas informed the Rajya Sabha on Monday. Minister of State Suresh Gopi said the national target of 20 percent ethanol blending in petrol has been advanced from 2030 to the Ethanol Supply Year (ESY) 2025–26. This target applies to the entire country, including states like Gujarat and Maharashtra.

Although there are no state-specific targets, Gujarat and Maharashtra have shown steady progress under the Ethanol Blending Programme. Gujarat recorded a blending rate of 10.47 percent in ESY 2021–22, 12.11 percent in ESY 2022–23, 14.33 percent in ESY 2023–24, and 18.95 percent in ESY 2024–25, as of June 30, 2025. Maharashtra reported similar gains with 10.48 percent in ESY 2021–22, 12.25 percent in ESY 2022–23, 14.49 percent in ESY 2023–24, and 18.84 percent in ESY 2024–25 by the same date.

Nationally, ethanol blending reached 10 percent in June 2022, five months ahead of the ESY 2021–22 target. The rate climbed to 12.06 percent in ESY 2022–23 and 14.60 percent in ESY 2023–24. For the current ESY 2024–25, blending stood at 18.93 percent by June 30, with a peak of 19.92 percent during the month of June 2025.

To meet the 20 percent target by ESY 2025–26, the government has launched several measures. These include expanding the range of raw materials allowed for ethanol production, fixing ethanol procurement prices, reducing GST on ethanol to 5 percent, and providing financial support through interest subvention schemes. Long-term supply agreements have been signed between oil marketing companies and dedicated ethanol plants.

The government has also supported the use of agricultural waste and other renewable sources through the Pradhan Mantri JI-VAN Yojana. Efforts are underway to improve ethanol transport, boost storage capacity, and upgrade infrastructure to handle higher ethanol blends.

The Ethanol Blended Petrol (EBP) Programme, launched in 2014, is aimed at reducing fuel imports, supporting farmers, and cutting emissions.

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