Ethanol blending program saved India’s Rs 1.97 lakh crore: Suresh Gopi

India’s ethanol blending programme has delivered significant economic and environmental gains, with cumulative foreign exchange savings exceeding Rs 1.97 lakh crore since 2014-15, the Centre informed Parliament on Monday.

Responding to a query in the Rajya Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi said the savings were achieved due to reduced crude oil imports under the Ethanol Blended Petrol (EBP) Programme. He clarified that the government has not taken any decision to increase ethanol blending beyond the current 20 per cent (E20) level.

Gopi added, “Any move to raise the blending level will be considered only after detailed scientific and technical studies and consultations with all relevant stakeholders, including automobile manufacturers, oil marketing companies and research institutions.”

India achieved its target of 20 per cent ethanol blending five years ahead of schedule, with blending levels rising sharply from 1.53 per cent in 2013-14 to 20 per cent in the 2025-26 ethanol supply year.

Highlighting broader benefits, the minister said the initiative has reduced crude oil imports by nearly 316 lakh tonnes and cut carbon dioxide emissions by around 952 lakh tonnes. It has also generated over Rs 1.66 lakh crore in additional income for farmers.

The Minister also informed that public oil marketing companies (OMCs) have procured 2,417.78 crore litres of ethanol worth Rs1.72 lakh crore during the previous three Ethanol Supply Years.

Addressing concerns over vehicle performance, Gopi mentioned that no widespread or substantiated complaints have been reported regarding engine damage or fuel-related issues due to E20 usage. He added that over 20 crore two-wheelers and more than three crore petrol cars are already operating on higher ethanol blends without verified adverse impacts.

While acknowledging a marginal 3–5 per cent drop in fuel efficiency for E10-designed vehicles, he emphasised that E20 offers higher octane levels and cleaner combustion.

On food security, the government stated that ethanol production relies on surplus grains and diversified feedstock, with maize contributing about 37 per cent of production in 2025-26.