Madhya Pradesh expands ethanol production to support India's clean energy goals

Madhya Pradesh supports India's Ethanol Blended Petrol (EBP) Programme to reduce fossil fuel dependence and promote cleaner energy. The government aims for 20% ethanol blending in petrol by 2025. Minister of State for Petroleum & Natural Gas, Suresh Gopi, informed the Lok Sabha on March 20 that ethanol blending in petrol has been increasing.

Madhya Pradesh supports ethanol blending

India achieved a 10% ethanol blend in June 2022, surpassing the original schedule. The blending rate rose to 12.06% in 2022-23, 14.60% in 2023-24, and 17.98% in 2024-25 (as of February 28, 2025). In February, the blending rate reached 19.68%.

Public sector oil marketing companies (OMCs) are selling up to 20% ethanol-blended petrol, depending on ethanol availability in states like Madhya Pradesh. However, Madhya Pradesh hasn't submitted proposals under the "Pradhan Mantri JI-VAN Yojana", a government scheme for biofuel projects.

To encourage ethanol production, the state government introduced the "Special Financial Assistance Policy for Ethanol and Bio-fuel".  This policy promotes using sugarcane, corn, and agricultural waste for biofuel. Several new projects are underway. Nayara Energy is investing ₹6 billion to build an ethanol plant in Balaghat, expected to start operations by 2026. Hydrise Group is also setting up a plant in Seoni, planned to start production in 2023. Additionally, a grain-based ethanol plant with a 6 MW power unit is proposed in the Agar district.

These efforts in Madhya Pradesh support India's goal of increasing ethanol blending. In the first four months of the 2023-24 supply year, India achieved an average ethanol blending rate of 11.60%, with a target of 20% by 2025. Ethanol is mainly produced from sugarcane molasses and grains. The government continues to push for higher production, even after banning the use of sugarcane juice and syrup for ethanol in 2023-24.

1.8 billion litres ethanol supplied

Between November and February, 1.8 billion litres of ethanol were supplied from sugarcane and grain sources. Despite the ban on sugarcane juice and syrup, officials believe the country will meet its blending target.

Industry data shows that 57% of the ethanol supply contracts have been fulfilled by sugar mills and distilleries. Of the 8.25 billion litres of ethanol supply tendered by OMCs, companies offered to supply 5.62 billion litres—about 69% of the required amount. Of this, 2.69 billion litres will come from the sugarcane industry and 2.92 billion litres from grains.

India's ethanol production relies on sugarcane-based molasses and grain sources. Different prices are set for ethanol based on its source—sugarcane juice, B-heavy molasses, or C-heavy molasses.

With ethanol projects expanding across various states, India is moving closer to its clean energy goals. Increasing ethanol production strengthens energy security, helps farmers, creates jobs, and reduces pollution. This marks a step towards a greener, sustainable future.

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