Why in the news?

  • Union Home and Cooperation Minister hailed the ethanol blending programme as a transformative initiative for India’s sugar cooperatives, crediting it with improving financial health and promoting rural prosperity.

Ethanol Blended Petrol Programme

  • Aim: To blend ethanol with petrol to reduce reliance on fossil fuels, enhance energy self-sufficiency, and lower carbon emissions.
  • Launch: 2014
  • Implementation: Ministry of Petroleum and Natural Gas, in coordination with the Ministry of Food Processing and Ministry of Agriculture.
  • Objectives:
    • Reduce crude oil imports, thereby saving foreign exchange.
    • Support farmers by using surplus sugarcane and grains.
    • Promote clean fuels for climate action.
    • Boost the domestic ethanol industry and create rural jobs.
  • Key Features:
    • Ethanol sourced from sugarcane juice, B-molasses, damaged grains.
    • OMCs (Oil Marketing Companies) procure ethanol at pre-fixed prices.
    • Recent Cabinet hike in ethanol procurement prices for Ethanol Supply Year 2024–25.
    • Dedicated ethanol distilleries and storage infrastructure being promoted under SATAT and PLI