India's ethanol mission sees state-run fuel firms spend Rs 1.72 lakh crore

New Delhi: Public Sector Oil Marketing Companies (OMCs) spent Rs 48,757 crore on ethanol procurement during Ethanol Supply Year (ESY) 2023-24, Rs 73,996 crore during ESY 2024-25 and Rs 49,577 crore up to June in ESY 2025-26, the government informed Parliament on Monday.

In a written reply in the Rajya Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi said PSU OMCs procure fuel-grade ethanol from domestic sugarcane- and grain-based feedstocks under the Ethanol Blended Petrol (EBP) Programme.

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"OMCs procure ethanol from domestic sources, including sugarcane-based feedstocks such as C-heavy and B-heavy molasses, sugarcane juice and sugar syrup, as well as grain-based feedstocks including damaged foodgrains, surplus rice with the Food Corporation of India (FCI) and maize," the minister said.

The minister further informed that as of July 16, 2026, PSU OMCs had registered 501 ethanol manufacturing units for the supply of denatured anhydrous ethanol under the Ethanol Blended Petrol Programme.

"As on 16.07.2026, Public Sector Oil Marketing Companies (OMCs) have registered 501 ethanol manufacturing units for supply of denatured anhydrous ethanol under the Ethanol Blended Petrol (EBP) Programme," Gopi said in the written reply.

According to the reply, Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), through its subsidiary HPCL Biofuels Ltd, are also engaged in the production of fuel-grade ethanol.

IOCL has an installed production capacity of 228 kilolitres per day and produced 712 kilolitres in ESY 2025-26 up to June 30. BPCL has an installed capacity of 200 kilolitres per day and produced 76 kilolitres, while HPCL Biofuels has an installed capacity of 120 kilolitres per day and produced 9,373 kilolitres during the period.

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The reply also showed that Uttar Pradesh recorded the highest sale of ethanol-blended petrol by PSU OMCs at 124.98 crore litres during ESY 2024-25, followed by Maharashtra at 110.66 crore litres, Tamil Nadu at 92.18 crore litres, Karnataka at 79.24 crore litres and Gujarat at 56.29 crore litres.

The government said the registered supplier base and domestic procurement network continue to support the implementation of the Ethanol Blended Petrol Programme across the country.