India is one of the fastest growing economies of the world, with its gross domestic product (GDP) growing at an average annual rate of 6.8 per cent. Energy inputs are a critical component of national economic activity. However, since it is believed that the conventional sources of energy will be exhausted in few decades; biofuels are being increasingly seen as potential alternatives to the liquid fossil fuels. In this context, ethanol is being seen as a promising renewable fuel for transportation purposes for the near future. In the year 2008, the Government of India announced its National Policy on biofuels, mandating a phase-wise implementation of the programme of ethanol blending with petrol in various states. This report examines demand and supply aspects of the Ethanol Blending Fuel program of India.

The government has set targets of 10 per cent bioethanol blending of petrol by 2022 and to raise it to 20 per cent by 2030 under the ethanol blending programme to curb carbon emissions and reduce India’s dependence on imported crude oil. 1G and 2G bioethanol plants are set to play a key role in making bio-ethanol available for blending but face challenges in attracting investments from the private sector. 1G bioethanol plants utilise sugarcane juice and molasses, by-products in the production of sugar, as raw material, while 2G plants utilise surplus biomass and agricultural waste to produce bioethanol. Currently, domestic production of bioethanol is not sufficient to meet the demand for bio-ethanol for blending with petrol at Indian Oil Marketing Companies (OMCs).

In India, ethanol production is mainly done using sugarcane as feedstock. For successful implementation of the EBP in the country, a steady supply of sugarcane (or sugarcane juice) as feedstock is required. In the last piece of June 2019, the complete land under sugarcane in the nation is assessed to be around 4.93 million hectares in 2019-2020 Sugar Season (SS), which is over 10% lower than 2018-2019 SS stick zone of around 5.50 million hectares. InfraInsights through its research aims to provide a report which covers various aspects of Biofuel market in India and delivering the key roles of expansion of sugar industry

  1. Executive Summary
  2. Approach & Methodology
  3. Indian Sugar Industry sector
    1. Production
    2. Distribution
  4. Ethanol-Fuel Blending Program & its Success / Failure in the world
  5. Liquid Fuel Market in India
    1. Demand
    2. Supply
    3. Trend
  6. Ethanol in India 2019-20
    1. Demand of Ethanol
    2. Supply of Ethanol
    3. Trade
  7. Ethanol blending in Fuel in India
    1. Journey So far
    2. Policy
    3. Success & Challenges
  8. Policy & Regulations
    1. Ethanol Blending Program in India
    2. Pradhan Mantri JI-VAN Yojana
    3. Other initiatives
  9. 1-G and 2-G biofuel plants in India
  10. Financial Support for Biofuel Producers and Consumers
    1. Financing and Fiscal Incentives
    2. Fiscal Stimulus to Augment Ethanol Supply for EBP
  11. Role of Stakeholders/Institutional Mechanisms
  12. Projected Demand for Ethanol fuel by 2030
    1. Optimistic Scenario
    2. Realistic Scenario
  13. Projected Capacity expansion
    1. Distillery plant
    2. Sugar plant
  14. Estimated demand for sugar & distillery plant equipment
    1. Mills
    2. Boilers
    3. VFDs
    4. Centrifugal Machines
  15. Ethanol Vs Petrol
    1. Estimating Volume Required by 2026
    2. Incremental capacity required to fill the gap
    3. Incremental Demand for Distillery equipment
  16. Procurement of ethanol by OMCs
    1. State-wise taxes & duties on ethanol

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