10% ethanol generated from sugarcane or excess food grain is mandated to be blended or mixed in gasoline (meaning 10% ethanol combined with 90% gasoline) in order to reduce oil import reliance and give farmers an alternative source of revenue. According to Oil Minister Hardeep Singh Puri, India has achieved 9% ethanol blending in gasoline and is optimistic of attaining the 20% objective by 2025.
Puri responded during Question Hour in the Lok Sabha saying, "In January, we already crossed the 9% threshold. We are certain that increasing from 9% to 20% between now and 2025 is feasible."
To assist lessen its reliance on costly oil imports. The government set a target of 20% ethanol blending with gasoline by 2025. Five years earlier than its prior objective. The goal is to attain 10% ethanol blending by 2022. I am quite certain that the 20% objective will be attained by 2025, Puri remarked.
India is the world's third-largest oil importer with foreign sources meeting more than 85% of its oil needs. A 10% mix would necessitate 4 billion liters of ethanol by the 2021-2022 sugar year (November 2021 to October 2022).
To reach 20% blending by 2025 and fulfil the needs of the chemical and other industries, About 12 billion liters of alcohol/ethanol would be required. The sugar sector will divert 6 million tones of extra sugar to generate 7 billion liters of ethanol with the remaining 5 billion liters produced from excess grain.
The administration also permitted the blending of ethanol derived from excess crops last year.