Ethanol blending with petrol has increased 10 times in 8 years: PM Modi

The rising blend of ethanol in petrol in the last eight years has helped the country avoid fuel imports worth ₹50,000 crore while permitting the same amount of money to flow into farmers' pockets, Prime Minister Narendra Modi said on Wednesday after inaugurating Indian Oil's second-generation (2G) ethanol plant in Panipat.

Ethanol blending has risen above 10% in the country, helped by a raft of policy measures, which addressed the shortage of biofuel, a key constraint leading to a lower blending ratio in previous years. In eight years, the ethanol production has risen to 4 billion litres from 400 million litres.

The 2G ethanol plant has been built at a cost of over ₹ 900 crore. It will utilise about 200,000 tonnes of rice straw annually to generate around 30 million litres of ethanol a year. The project will reduce emissions by about 300,000 tonnes of CO2 equivalent per annum.


Projects like 2G ethanol plants will help provide a lasting solution to fuel and environmental problems of the country, Modi said. He also used the occasion to attack political rivals for not seeking lasting solutions to national problems. "Those adopting shortcuts may get applause for some time, and may gain political advantage, but that does not solve the problem."