India is increasing ethanol blending in petrol to reduce crude oil imports and support cleaner fuel production. Ethanol blending has grown from around 1.5% in 2014 to nearly 20% in 2026.
This growth is creating new opportunities for farmers, biofuel companies and the energy industry.
Why India Is Increasing Ethanol Blending
Ethanol is produced from agricultural materials such as sugarcane, maize and other grains.
India introduced its Ethanol Blending Programme in 2003. The National Policy on Biofuels in 2018 encouraged the use of more raw materials for ethanol production.
The programme aims to reduce oil imports, support farmers and improve India’s energy security.
Is E20 Petrol Safe?
E20 petrol contains 20% ethanol and 80% petrol.
The Ministry of Petroleum and Natural Gas has clarified that E20 petrol does not automatically damage vehicles or invalidate insurance.
However, older vehicles may have compatibility issues, making manufacturer guidance important.
Centreal Biofuels Plans ₹700 Crore Goa Plant
Kochi-based Centreal Biofuels Limited is planning a grain-based plant at Bicholim Industrial Estate in North Goa.
The project involves an investment of approximately ₹700 crore and a proposed capacity of 300 kilolitres per day.
The plant will mainly use maize to produce Extra Neutral Alcohol (ENA), which is used in pharmaceuticals, cosmetics and other industries.
Praj is expected to be the technical collaborator.
Plant to Produce Animal Feed
The proposed facility will also produce DDGS, a protein-rich animal feed made from the remaining materials after grain processing.
The company plans to use Zero Liquid Discharge technology to treat and recycle wastewater.
Ethanol Creates New Business Opportunities
India’s growing ethanol industry is increasing demand for agricultural products, manufacturing facilities and transport services.
The country is also exploring flex-fuel vehicles that can operate using different ethanol-petrol mixtures.
Centreal Biofuels is targeting a turnover of around ₹5,000 crore over the next five years, according to its plans.
As India works to reduce its dependence on imported oil, ethanol is becoming an important industry connecting agriculture, manufacturing and energy.
