Business Remedies | Jaipur | India is set to raise its ethanol blending target in petrol to 30% by 2030, building on the successful achievement of a 20% blending milestone five years ahead of schedule. This ambitious goal is part of the government’s broader strategy to enhance energy security, reduce greenhouse gas emissions, and support the rural economy.
Progress & policy developments
The initial target of 20% ethanol blending was set for 2030 under the National Policy on Biofuels (NPB) – 2018. However, in 2020, the Cabinet Committee on Economic Affairs (CCEA) advanced this target to the 2025-26 ethanol supply year (ESY), reflecting the government’s commitment to accelerating ethanol usage. By March 2025, India had already achieved a 20% blending rate, prompting the government to set a new target of 30% blending by 2030.
Implementation strategies
The Ministry of Petroleum and Natural Gas is currently evaluating strategies for implementing the 30% ethanol blending target. Options under consideration include a phased rollout, where E30 fuel would be introduced in stages across different regions, and a unified rollout, where E30 fuel would be made available nationwide simultaneously.
Implications for the automotive sector
While the transition to higher ethanol blends offers environmental and economic benefits, it also presents challenges for the automotive sector. Most petrol vehicles in India are currently compatible with E20 fuel. However, higher ethanol blends, such as E30, may affect engine performance and fuel efficiency in older vehicles not designed for higher ethanol content.
