The Ethanol Blended Petrol Programme, usually shortened to EBP, is one of the most consequential energy policies India has run in the last two decades. The idea is simple. Blend locally produced ethanol into petrol, and in doing so cut the country's crude oil import bill, put money in farmers' pockets and lower emissions at the same time.
In the Ethanol Supply Year 2025-26, India reached an average of 20% ethanol blending, known as E20. That target was met five years ahead of the original 2030 deadline set under the National Policy on Biofuels, turning a long-running ambition into a reality at fuel pumps across the country.
India's ethanol journey did not happen overnight. It began with pilot blending projects around 2001 and stayed modest for years. As recently as 2013-14, average blending was only about 1.53%. The National Policy on Biofuels in 2018 gave the programme a clear framework and set a 20% target for 2030.
In 2021 the government advanced that deadline to 2025-26 and published a detailed ethanol roadmap. A steady expansion of distillery capacity, supportive procurement by oil marketing companies, and a widening set of approved feedstocks did the rest. Blending crossed 10% in 2022 and reached 20% in 2025-26.
The strategic case rests on one uncomfortable fact. India imports close to 88.5% of the crude oil it consumes, which leaves the economy exposed to global price shocks and currency pressure. Every litre of ethanol blended into petrol is a litre of imported fuel not bought.
Taken together, these outcomes are why the EBP Programme is often described as a rare policy that serves energy, the rural economy and climate goals at once.
Ethanol for the programme is produced from more than one feedstock, and that diversity is deliberate. Sugarcane routes, using cane juice and molasses, were the historical backbone. Grain-based ethanol, made from maize and surplus or damaged food grains, has grown quickly and now plays a central role in balancing supply.
Spreading production across feedstocks protects the programme from a single bad harvest and lets distilleries run through the year. It is also why India's installed ethanol capacity has expanded from around 421 crore litres in 2014 to roughly 2,000 crore litres by 2026, comfortably more than the E20 mandate requires.
With E20 in place as the national baseline, attention has turned to what comes next. The government has extended excise duty relief to higher blends such as E22, E25, E27 and E30, and standards bodies have issued specifications to support them.
Regulators are also drafting rules to recognise flex-fuel vehicles that can run on E85 and even E100, and the first E85 retail outlets have begun to appear. The pace of any further move up from E20 will depend on vehicle readiness and stakeholder review, but the direction of travel is clear.
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