Pralhad Joshi hints at 25% ethanol blending

The Union Government will take a decision on raising ethanol blending in petrol to 25% after a committee constituted to examine the proposal submits its recommendations, Union MNRE Minister Pralhad Joshi said.

Speaking to the media in Hubballi, Joshi said that the Central Government had formed the committee to examine the proposed increase and would consider its recommendations before taking a final decision.

Defending India’s ethanol blending programme, Joshi said the policy was first conceived during the Atal Bihari Vajpayee-led government in 2003-04, while its implementation began during the UPA government, when ethanol blending stood at slightly above 1%.

The Narendra Modi government subsequently continued the programme and implemented it in phases, eventually taking the country’s ethanol blending level to 20%, he said.

Responding to opposition to higher ethanol blending in petrol, Joshi highlighted the benefits of ethanol production for the sugar industry. He said the expansion of ethanol production had helped sugar mills clear outstanding payments to sugarcane farmers.

According to Joshi, sugar mills had accumulated substantial arrears owed to farmers when the Modi government came to power. The Centre provided financial assistance of around Rs 14,000 crore to help clear these dues, he said.

The minister’s comments come amid continuing debate over the next phase of India’s ethanol blending programme, with industry and other stakeholders examining the implications of moving beyond the current 20% blending level.

Separately, Joshi responded to criticism surrounding the government’s reported 7.8% GDP growth for the April-June quarter. He said statistical data could not be falsified and noted that leaders from several major economies, including those attending the recent BRICS summit, had acknowledged India’s economic growth.

As per reports, Joshi attributed questions over the growth figures to what he described as ‘disgruntled interests.’

India’s Current Ethanol Scenario

India’s total installed ethanol production capacity has risen to around 1,822 crore litres annually. Of late, the country’s biofuel strategy has increasingly shifted towards grain-based feedstocks. Grains now account for around 65–67% of total ethanol production, while sugarcane and its molasses-based derivatives contribute the remaining 33–35%.