India's Ethanol Blended Petrol programme dates back to 2003: A timeline from E5 to E85
India's push for E20 fuel for vehicles drew mixed reactions from across the country. Many claimed that the use of E20 fuel, in place of
India's push for E20 fuel for vehicles drew mixed reactions from across the country. Many claimed that the use of E20 fuel, in place of normal petrol, may cause vehicle breakdown or reduced mileage. But several industry experts dismissed these claims on Saturday (4 July), saying that E20 petrol has been scientifically tested and is safe for vehicles. On June 5, India launched E85 fuel, a high-ethanol blend designed for fle fuel vehicles, at ₹20 a litre discount to normal petrol. While E20 fuel is a blend of 20 percent ethanol and 80 percent petrol, E85 contains 80-85 per cent ethanol and 14-19 per cent petrol, and can be used only in fle fuel vehicles capable of operating on ethanol blends ranging from E20 to E100. India's Ethanol Blended Petrol (EBP) programme is not new. It dates back to 2003. The programme had started early with 5 percent EBP in 20 states and 4 UTs of India. Here's the full timeline: In August 2025, India's oil minister Hardeep Singh Puri shed light on the programme ever since PM Modi came to power in 2014. He said ethanol blending was merely 1.53 percent in 2014. "By 2022, India achieved 10 percent blending, five months ahead of schedule," he said. Singh said that the original target of 20 percent blending (E20) by 2030 was advanced to 2025. "The country will now gradually scale towards E25, E27, and E30 in a phased, calibrated manner with the support of BIS standards and fiscal incentives, Singh had said.
From E5 to E85 2001: India started blending ethanol in petrol on a pilot basis. 2003: Ethanol Blended Petrol (EBP) Programme was launched 2006: Ministry of Petroleum and Natural Gas directed the Public Sector Oil Marketing Companies (OMCs) to sell 5% EBP (E5) in 20 states and 4 UTs. "Even though the programme started early it faced multiple inherent challenges leading to slow adoption and growth. But the programme did not meet success," the government had said in its report. 2014: Re-introduced administered price mechanism for ethanol to be procured under the EBP Programme. "Opened alternative route for ethanol production (2nd Generation including Petrochemicals), directed Oil PSEs to set up bio-refineries," the report said. 2014-15: Tendering processes simplified– Multiple EOI, transportation slabs and rates. May 2016: IDR Act Amendment on May 14, 2016, to clarify on the roles of central and state governments for continuous supply of ethanol to be blended with petrol under EBP Programme 2016-17: Regular Interaction with states and all other stake holders to address issues regarding the EBP Programme - This is an ongoing process. June 2018: Notified forward-looking and updated Policy on Biofuels – 2018, involving all stakeholders July 2018: Interest Subvention Scheme to improve and increase ethanol production capacity in the country. The government to provide interest (interest subvention), for a period of 5 years. GST on Ethanol lowered from 18% to 5%. 2018-19: Allowed conversion of B heavy molasses, sugarcane juice and damaged food grains to ethanol.
The BriefWire