Policy status:In Force
Date Effective:2008
Policy Type:Regulatory Instruments>Obligation schemes , Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums, Policy Support
Policy Target:Transport, Framework/ Multi-sectoral Policy
Agency:Government of India on National Policy

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 companiesin twenty states and four union territories. 

There are three main uses of ethanol in India:

  1. 45% is used to produce potable liquor
  2. 40% is used in alcohol-based chemical industry
  3. 15% used for other purposes

Bioethanol benefits from a concessional excise duty of 16%.

Last modified: Thu, 01 Jun 2017 15:08:05 CEST