New Delhi, July 10 (). The Petroleum Ministry on Friday said the shift from E10 to E20 (20 per cent ethanol blended petrol) is the result of years of investigation, discussions with manufacturing companies and ground trials. Also said that the process of mixing ethanol in petrol was not done during his government, but during the previous governments.
“A pilot program of ethanol blending was started in 2001, formally announced in 2004 and E5 (5 per cent ethanol blending) was implemented in many states by 2006. Subsequently, its policy framework was notified in the Gazette of India in January 2013 during the UPA government. All these are available in public records,” the ministry said in the statement.
India had set a target of 5 percent ethanol blending in 10 states and union territories. Unfortunately, despite this target, the mix remained stuck at around 1.5 per cent as of 2014.
The Petroleum Ministry said, “No one questioned ethanol as a fuel. This was already decided across the world. The real challenge was how India could produce ethanol in sufficient quantities.”
At that time, India was almost entirely dependent on sugarcane, which is a seasonal crop, and the annual ethanol production capacity was about 400 crore litres. This level of production was inadequate even for the modest targets of ethanol blending.
Understanding this problem, the government made fundamental changes in the way it worked. With the launch of the ‘National Policy on Biofuels’ in May 2018, the government began creating the necessary ecosystem to produce ethanol on a large scale. It had become a mission for the entire government.
“The Ministry of Petroleum and Natural Gas, Department of Food and Public Distribution, Ministry of Road Transport and Highways, Ministry of Heavy Industries, Indian Railways and many other ministries worked together in coordination to increase feedstock, create infrastructure, support technology, streamline logistics, create demand certainty and promote investment,” the government statement said.
The government further said that an important step was taken in August 2021, when India’s oil marketing companies IOCL, BPCL and HPCL issued ‘Expression of Interest’ (Expression of Interest) to specifically set up ethanol plants (DEP) in ethanol deficient areas.
These projects completely changed the investment environment because they included long-term firm purchase agreements from oil marketing companies; A three-way financing arrangement with public sector banks through an escrow mechanism significantly reduced the investment risk and included mandatory supply of ethanol only for the ‘Ethanol Blended Petrol Programme’. Also, these plants naturally took about two years to become operational.
Another important milestone came in June 2021, when NITI Aayog released its detailed roadmap on ethanol blending after extensive interactions with automobile manufacturers, oil companies, agriculture experts and other stakeholders.
The report not only emphasized the environmental and energy security benefits of ethanol, but also highlighted its significant impact on rural incomes and the agricultural economy.
At that time, India needed 500-600 crore liters of ethanol annually for 10 percent blending. As new investments came in and production capacity increased, it became clear that the country would soon be able to produce about 1,200 crore liters of ethanol.
The ministry said that once the supply situation was secure, targeting 20 per cent blending became a logical and responsible step. Therefore, the suggestion that India ‘rushed’ into ethanol blending does not match the facts.
It has been a journey of more than two decades – from pilot projects in 2001 to policy notifications in 2013, institutional reforms after 2018, large-scale investments in 2021 and then a deliberate and phased increase in blending levels.
According to the statement, before implementing this, discussions were held with all concerned parties including automobile manufacturing companies, testing agencies, OMCs, DFPD etc.
Before implementing E20, the government held several rounds of detailed interactions with automobile manufacturing companies, technical experts, testing agencies and other relevant parties to ensure readiness across the entire ecosystem.
Maruti Suzuki serviced 2.84 crore vehicles during FY 2025-26, including 1.5 crore older, non-E20 certified vehicles, and found no E20-related issues like corrosion, abnormal wear or reduced life of parts.
Hero MotoCorp has also reported a similar experience. This real-world evidence is much more reliable than isolated anecdotes.
The ministry advised consumers not to be misled by misinformation, threatening statements or unverified content being spread on social media. Ethanol and blended petrol adhere to stringent BIS standards and are quality checked at every stage from the distillery to the depot and retail outlet.
“Any procedural lapse anywhere in the supply chain should be dealt with strictly. Chief Secretaries of states have been asked to ensure strict adherence to rules and take strict action in any case of adulteration. Zero tolerance policy should be adopted for lapses that compromise the quality of fuel,” the ministry said.
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