New Delhi, July 5: The Government of India has strongly defended its Ethanol Blended Petrol (EBP) Programme, describing it as a cornerstone of the country’s energy transition strategy while seeking to counter what it called misinformation surrounding the nationwide rollout of E20 fuel.
In a detailed policy note issued on Sunday, the government said India has achieved its target of 20 per cent ethanol blending in petrol during the 2025-26 ethanol supply year, five years ahead of the original schedule. Ethanol blending has increased from less than 1.5 per cent in 2013-14 to 20 per cent, with annual procurement projected to exceed 1,200 crore litres.
According to the government, ethanol production capacity has expanded from 421 crore litres in 2014 to nearly 2,000 crore litres in 2026, helping reduce dependence on imported crude oil while creating additional income opportunities for farmers.
The government estimated that since 2014-15, the programme has saved more than ₹1.90 lakh crore in foreign exchange, substituted over 310 lakh metric tonnes of crude oil, reduced carbon dioxide emissions by around 930 lakh metric tonnes, and generated more than ₹1.60 lakh crore in additional earnings for farmers.
With India importing nearly 88.5 per cent of its crude oil requirements, the Centre said ethanol blending is intended to improve energy security by increasing the use of domestically produced biofuels derived from sugarcane, maize and surplus rice.
Government rebuts criticism
The policy document also addresses several concerns that have circulated in public discourse and on social media regarding E20 fuel.
The government rejected claims that E20 reduces fuel efficiency by as much as 30 per cent, damages vehicle engines, invalidates insurance or manufacturer warranties, or significantly affects vehicle performance.
It maintained that extensive testing by automobile manufacturers, the Society of Indian Automobile Manufacturers (SIAM), the Automotive Research Association of India (ARAI) and Indian Oil Corporation found no evidence of widespread engine damage attributable to E20.
Officials also disputed assertions that ethanol production diverts excessive quantities of water or compromises food security, stating that only surplus food grains approved after meeting national food security requirements are used for ethanol production and that modern distilleries employ water recycling systems.
The Centre further clarified that ethanol used in fuel is industrially processed and contains no sugar, dismissing viral claims that insects are attracted to fuel tanks because of ethanol blending.
Industry backs E20 rollout
The government cited statements from senior executives of major automobile manufacturers, including Toyota Kirloskar Motor, Maruti Suzuki and Hero MotoCorp, who said their service records have not shown any unusual engine failures linked to E20 fuel.
Industry representatives also maintained that any reduction in fuel economy is relatively modest in real-world driving conditions and that ethanol’s higher octane rating can improve combustion and lower emissions in engines designed for the fuel.
International experience cited
The Centre also pointed to international experience, noting that ethanol blending has become standard practice in several countries.
It highlighted the widespread use of E10 and higher blends in the United States, Brazil’s long-standing adoption of blends exceeding 25 per cent, Japan’s phased introduction of ethanol-blended fuel, and similar programmes in Canada, Thailand and several European countries.
Questions over long-term viability remain
Despite the government’s strong defence, the ethanol blending programme continues to attract debate among economists, environmental experts, sections of the automobile industry and policy analysts.
Critics have questioned the long-term sustainability of diverting agricultural crops such as sugarcane and rice towards fuel production in a country that remains vulnerable to food inflation and climate-induced agricultural stress. Water-intensive sugarcane cultivation has also emerged as a major concern, particularly in regions already facing groundwater depletion.
Economists have additionally argued that the programme’s financial viability may become more challenging as ethanol procurement costs have risen above refined petrol prices. While the government says the broader benefits of energy security, reduced emissions and rural incomes justify the policy, some experts contend that these advantages need to be weighed against higher production costs and potential fiscal implications.
Some vehicle owners and consumer groups have also expressed concerns about compatibility of older vehicles with higher ethanol blends, although the government and automobile manufacturers maintain that available evidence does not indicate widespread operational problems.
Analysts have further suggested that sustaining the programme beyond the current blending target will require careful balancing of competing priorities including food security, water availability, agricultural diversification and expansion of second-generation ethanol produced from agricultural residues rather than food crops.
The government, however, reiterated that the EBP Programme has been developed through phased implementation, scientific evaluation and consultations with industry stakeholders, and said it will remain a central component of India’s strategy to reduce fossil fuel imports, cut emissions and strengthen domestic energy security.
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