The Central Government will conduct a thorough review of the national ethanol blending programme before considering any higher targets, Petroleum and Natural Gas Minister Hardeep Singh Puri said as the debate about ethanol blending impact on vehicles rages on.
The programme, which mixes ethanol with petrol to reduce crude oil imports and curb carbon emissions, had set a target of 20% blending (E20) by 2025-26. Originally scheduled for 2030, the target was advanced by five years in view of its rapid progress.
“We had the target of 20% blending by 2030, and we achieved it six years ahead of schedule. I will put a full stop there; we will assess where we have to go,” Puri said at the KPMG ENRich conference in New Delhi. “Contrary to speculation, there will be no hurried leapfrogging. Decisions will be taken after evaluating how the ecosystem is adapting.”
India’s blending levels stood at just 1.4% in 2014. The country reached the 10% mark in November 2022, five months ahead of deadline, Puri noted.
Concerns have been raised by vehicle owners and automakers regarding ethanol’s impact on fuel efficiency, engine performance, and prices. However, the Petroleum Ministry dismissed these fears last month, stating that E20 fuel does not harm engines.
Puri said that if someone drives from Delhi to Gurugram daily, there are at least 21 reasons why a car’s efficiency may drop by 1-2% and the issue is not ethanol. He also shrugged-off claims that biofuels damage engines. Previously, Nitin Gadkari had also held that vested interests are maligning the ethanol blending success of India.
Highlighting broader reforms in the sector, Puri also pointed to the Oilfield (Regulation and Development) Amendment Bill, calling it a “landmark” step aimed at boosting investment in exploration and production.
India’s ethanol initiative has helped India save Rs. 1,26,210 crore in foreign exchange by reducing the need for crude oil imports and boosted farmers’ incomes by Rs. 1,07,580 crore.
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