In a major boost for India’s ethanol sector, a leading ethanol manufacturer has received a substantial order worth ₹124 crore from public sector oil marketing companies (OMCs) such as Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL). This order is part of the Ethanol Blended Petrol (EBP) Programme, which aims to reduce fossil fuel dependency and promote cleaner energy sources.
Details of the Order
The ethanol manufacturer will supply 3.72 crore litres of ethanol to IOCL, BPCL, and Hindustan Petroleum Corporation Limited (HPCL) during the Ethanol Supply Year (ESY) 2023-2024 (November 1, 2023 – October 31, 2024). The deliveries will take place in four phases.
Additionally, byproducts generated during ethanol production will also be sold separately, contributing to additional revenue. With this total volume and byproduct sales, the company is expected to generate ₹275 crore in revenue. (Read more on Economic Times)
Government’s Ethanol Blending Push
The Indian government has been actively promoting the Ethanol Blended Petrol (EBP) Programme, which has seen ethanol supplies increase from 38 crore litres in ESY 2013-14 to over 500 crore litres in ESY 2022-23, achieving an average ethanol blending of 12.06% in petrol.
- For ESY 2024-2025, ethanol blending has further improved to 16.23% as of December 29, 2024. (Check out the official PIB report)
- To encourage ethanol production, the government has revised ethanol procurement prices for public sector OMCs for ESY 2024-25 (November 1, 2024 – October 31, 2025). (Read more from PIB)
Why Ethanol is the Future of India’s Fuel Industry
The ethanol industry in India is at a turning point, supported by favorable policies, rising investments, and increasing adoption by OMCs. Key reasons why ethanol is seen as the fuel of the future include:
- Reduced Oil Imports: India imports nearly 85% of its crude oil, and ethanol blending lowers the fuel import bill.
- Lower Carbon Emissions: Ethanol-blended petrol reduces greenhouse gas emissions, improving air quality.
- Boost to Farmers: Ethanol production generates demand for sugarcane and maize, benefiting Indian farmers.
- Energy Security: Diversifying fuel sources strengthens India’s energy security and reduces dependency on volatile crude oil markets.
Tags: Ethanol stock jumps after securing a ₹124 Cr order from IOCL, BPCL & HPCL. Learn about India’s ethanol growth, policies, and future trends.