Gujarat and Maharashtra are on track to meet India’s national target of 20% ethanol blending in petrol ahead of the Ethanol Supply Year (ESY) 2025–26 deadline.
Minister of State for Petroleum and Natural Gas, Suresh Gopi, informed the Rajya Sabha on the progress of ethanol blending in Gujarat and Maharashtra.
While responding to a question on the progress of the Ethanol Blending Programme (EBP) in the two states, Gopi cited consistent year-on-year improvements. “Gujarat recorded 10.47% ethanol blending in the ESY 2021–22, which increased to 12.11% in 2022–23, 14.33% in 2023–24 and 18.95% as of June 30, 2025, for the current ESY 2024–25,” the minister said.
Maharashtra’s performance closely mirrored Gujarat’s, with ethanol blending reaching 10.48% in 2021–22, 12.25% in 2022–23, 14.49% in 2023–24 and 18.84% so far this year.
At the national level, Public Sector Oil Marketing Companies (OMCs) met the 10% ethanol blending target in petrol by June 2022—five months ahead of schedule during ESY 2021–22. Blending reached 12.06% in ESY 2022–23, and 14.60% in ESY 2023–24. For the current ESY 2024–25, the blending percentage has increased to 18.93% as of 30 June 2025, with a 19.92% blending rate recorded in June 2025.
Since 2014, the government has implemented several measures to boost ethanol production in India. These include expanding feedstock options, implementing an administered price mechanism for ethanol procurement under the EBP, reducing GST on ethanol for the EBP to 5%, launching various Ethanol Interest Subvention Schemes (EISS) between 2018-22, and a dedicated subvention scheme for Cooperative Sugar Mills to convert sugarcane-based distilleries into multi-feedstock ethanol plants using molasses and grains. Additionally, Long Term Offtake Agreements (LTOAs) have been established between OMCs and dedicated ethanol plants, multimodal transport has been enhanced to improve ethanol availability, and ethanol storage capacity along with related infrastructure for higher blends has been expanded.
