Government Game-Changing Role in Bioenergy and Ethanol Production for a Sustainable and Secure Energy Future

The Government of India has notified the National Bioenergy Programme (NBP) to promote the use of bioenergy and waste-to-energy technologies to enhance energy security and foster sustainable development. Alongside, the government has taken several measures to accelerate the growth of the biofuels sector and increase ethanol blending by 2025.

Government Initiatives to Boost Ethanol Production:

• Expansion of feedstock for ethanol production.
• Pricing mechanism for the procurement of sugarcane-based ethanol under the Ethanol Blended Petrol (EBP) Programme.
• Reduction of GST on ethanol under the EBP Programme to 5%.
• Various Ethanol Interest Subvention Schemes during 2018-22 for ethanol production from molasses and grains.
• Long-Term Offtake Agreements (LTOAs) between Oil Marketing Companies (OMCs) and Dedicated Ethanol Plants (DEPs).

The government has also launched the "Pradhan Mantri JI-VAN Yojana" to provide financial support for the establishment of advanced biofuel projects in the country using lignocellulosic biomass and other renewable feedstock.

Promotion of Maize Production for Ethanol Supply:

Under the Ethanol Blended Petrol Programme, the Indian Council of Agricultural Research (ICAR) – Indian Institute of Maize Research (IIMR) has undertaken initiatives to promote maize as a major feedstock for ethanol production. This includes training, awareness and demonstration programmes for stakeholders especially farmers.

• 788 demonstrations were held across 15 clusters in 15 states during Kharif 2024.
• In Rabi 2024-25, inputs were distributed to demonstrate advanced practices on 720 acres in the catchment areas of ethanol industries.
• Special training sessions were conducted for farmers, distillers, and seed production organizations.

Efforts to Boost Oil and Gas Production:

The government has introduced the Oilfields (Regulation and Development) Amendment Bill, 2024, aimed at increasing domestic oil and gas production and reducing import dependency. The bill is designed to attract investments in exploration and production, create an investor-friendly environment and promote business eases while boosting the exploration, development, and production of all types of hydrocarbons.

Advancement in Biofuel Projects:  The Pradhan Mantri JI-VAN scheme, financial assistance of over ₹908 crores has been approved for six commercial and four demonstration-scale second-generation bio-ethanol projects by public and private sector OMCs. One of these commercial projects in Panipat, Haryana, has already been dedicated to the nation, while other projects are in advanced stages of construction. In the past decade, ethanol blending in petrol by public sector OMCs has contributed to the reduction of approximately 5.57 million metric tonnes of CO2 emissions.