The Ministry of Petroleum and Natural Gas on Monday told the Rajya Sabha that the central government has not specified ethanol blending targets for any state. Minister of State Suresh Gopi made it clear that the national goal of reaching 20% blending of ethanol in petrol has been brought forward from 2030 to the Ethanol Supply Year (ESY) 2025–26, and this will apply across the board to all states, including Gujarat and Maharashtra.
Although there are no state-specific goals, both Gujarat and Maharashtra have seen steady growth under the Ethanol Blending Programme (EBP). Gujarat’s blending rate of ethanol increased from 10.47% during ESY 2021–22 to 12.11% during ESY 2022–23, then 14.33% during ESY 2023–24, and 18.95% during ESY 2024–25 as of June 30, 2025. Maharashtra also followed the same trend, with the rates increasing from 10.48% during ESY 2021–22 to 12.25% during 2022–23, 14.49% during 2023–24, and 18.84% during the current ethanol supply year.
At the national level, the blending rate of ethanol stood at 10% in June 2022—five months before the target period of ESY 2021–22. The rate was raised to 12.06% during the ESY 2022–23 and then to 14.60% during the ESY 2023–24. In the case of the current ESY 2024–25, the nation recorded an average blending rate of 18.93% up to June 30, while the month of June 2025 itself reached 19.92%.
To facilitate the compounded target, the central government has undertaken various measures. They involve increasing the feedstock base for the production of ethanol, a minimum procurement price, reducing GST on ethanol to 5%, and providing fiscal incentives through interest subvention programmes. Oil marketing companies have signed long-term supply contracts with the producers of ethanol to achieve steady supply.
The government is also encouraging the utilisation of agricultural residue and other renewable biomass under the Pradhan Mantri JI-VAN Yojana. Other initiatives are being undertaken to improve ethanol transport, increase storage facilities, and enhance infrastructure to support higher blending ratios.
The Ethanol Blended Petrol (EBP) Programme, launched in 2014, seeks to lower India’s dependence on fuel imports, aid the agricultural economy, and check carbon emissions by adopting cleaner energy solutions.
