India's Ethanol Boom: A Transformative Decade Under Modi

India's ethanol production capacity has soared to 1,810 crore litres annually, aided by policy reforms and subsidies. This surge has increased ethanol-petrol blending to nearly 19% from 1.53% in 2013, achieving significant foreign exchange savings and supporting sugarcane and foodgrain farmers.

India has witnessed a remarkable increase in ethanol production capacity over the past 11 years, according to a senior government official. Under the Modi administration, the annual capacity has risen to 1,810 crore litres from just 421 crore litres in 2013, thanks to a series of favorable policy measures.

These policies have led to an astronomical increase in ethanol blending with petrol, now nearing 19%, significantly up from the mere 1.53% seen in 2013. The ramped-up production not only reduces import dependency but also results in substantial savings of foreign exchange.

The government initiatives have notably benefited sugarcane and foodgrain farmers. New interest subvention schemes introduced between 2018 and 2025 are allowing sugar and grain-based distilleries to expand, further promoting the Ethanol Blended Petrol (EBP) program aimed at achieving a 20% blending target by 2025-26.