National Biofuel Policy: Ethanol Blending Policy (EBP)

By 2008 the Government of India announced an aggregated National Policy on biofuels, mandating the implementation of the programme of ethanol blending with petrol in various states. The implementation has had an effect on the automobile industry and was administered in phases. The implementation of India's ethanol production was mainly concentrated on sugercane production and as such a steady supply needs to be maintained. As far as 2011, this study suggests 5 per cent of the automotive industry included the ethanol and fuel blend, however, sufficient lead time would have to be given in order for engine motors to effectively process higher end blended fuels. The initiative led to a 20% blending of bio-ethanol by 2017 and was taken up by the oil market companies in twenty states and four union territories. There are three main uses of ethanol in India: 45% is used to produce potable liquor 40% is used in alcohol-based chemical industry 15% used for other purposes Bioethanol benefits from a concessional excise duty of 16%.

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