Govt to bring ethanol into everyday cooking

India may soon introduce ethanol as a household cooking fuel, marking a significant step in its clean energy transition. The Ministry of Petroleum and Natural Gas is preparing a policy framework to promote ethanol as an alternative to liquefied petroleum gas (LPG). The initiative comes amid ongoing discussions around ethanol-blended petrol and aims to expand ethanol’s role beyond the transport sector.

The move could enhance energy security, especially as India continues to depend heavily on LPG imports from the Gulf region.

The proposed policy will likely include subsidy mechanisms and strategies to build a robust supply chain for ethanol distribution. As per reports, industry associations and fuel suppliers are already in discussions with the government to shape the framework. If finalised as expected, the policy could be rolled out by September.

Ethanol adoption could help reduce India’s dependence on LPG imports and lower the national fuel import bill. Trials of ethanol-powered cooking stoves are already underway, following government directives to explore cleaner household energy options.

To support adoption, the government may introduce financial incentives, either as one-time capital subsidies or ongoing fiscal support. Public sector oil marketing companies are also playing a key role, investing in research and development of ethanol-based cooking technologies and exploring partnerships to scale up deployment.

India’s ethanol production capacity has crossed 20 billion litres annually, with an additional 4 billion litres expected this year. While a significant portion is used for ethanol blending in petrol and by industries such as pharmaceuticals and chemicals, about 7 billion litres remain unused. This surplus creates an opportunity not only for domestic use but also for exports to neighbouring countries.

Plans are also being considered to set up ethanol dispensing units at fuel stations, enabling consumers to purchase fuel conveniently.