Government Says E20 Transition Is Result of Tested Supply Chain, Not Rushed Move
New Delhi, July 10 — In a detailed statement, the Petroleum Ministry asserted that the switch to E20 – petrol containing twenty percent ethanol – is the result of a rigorously tested supply chain and not a hurried policy shift.
The ministry recounted that ethanol blending began with a pilot scheme in 2001, followed by a formal rollout announcement in 2004 and the rollout of a 5 % blend (E5) across many states by 2006. A policy note was officially notified in the Gazette of India in January 2013 under the UPA regime; these records are publicly accessible.
Although the government aimed for a 5 % blend in ten states and union territories, the actual blending ratio hovered around 1.5 % until 2014. The ministry emphasized that ethanol’s viability as a fuel is universally accepted; the real obstacle was scaling up ethanol production.
At that stage, India’s ethanol output was largely tied to sugarcane, a seasonal crop, limiting annual capacity to roughly 400 crore litres – far below even modest blending requirements.
The launch of the National Biofuel Policy in May 2018 marked a turning point. A coordinated effort involving the Ministries of Petroleum & Natural Gas, Food & Public Distribution, Road Transport & Highways, Heavy Industries, Indian Railways and others created the required feedstock, infrastructure, technology support, logistics network, demand assurance and investment incentives.
In August 2021, oil marketing firms IOCL, BPCL and HPCL released an Expression of Interest for setting up Distilled Ethanol Plants (DEPs) in ethanol‑deficit zones. The projects featured guaranteed long‑term purchase agreements, escrow‑based financing with public sector banks and a three‑party financing structure, which mitigated risk and secured a mandatory ethanol supply for the blending programme. Plant commissioning typically required about two years.
June 2021 saw NITI Aayog publish an elaborate roadmap after consultations with automobile manufacturers, oil companies, agricultural experts and other stakeholders. The report highlighted ethanol’s environmental and energy‑security benefits as well as its capacity to raise rural incomes and boost the agricultural economy.
The roadmap estimated that a 10 % blend would need 500‑600 crore litres of ethanol annually. With new investments, projected capacity is set to exceed 1,200 crore litres, making a 20 % blend a logical, responsible next phase.
The ministry concluded that the journey to E20 spans more than two decades – pilot projects in 2001, policy notification in 2013, ecosystem reforms after 2018, large‑scale investments in 2021 and a phased, well‑planned increase in blend ratios. The notion that India rushed the blending program is not consistent with the documented evidence.