Ethanol Blending in India: Clean Fuel Vs Consumer-Based Challenges

📚 Syllabus: Energy
📰 Source: Business Standard (BS)
🗓️ Context: India achieved its E20 target (20% ethanol-blended petrol) ahead of schedule in early 2025. However, this success is accompanied by new technological and consumer-related challenges.

Introduction

India’s ethanol blending programme is considered a significant step towards environmental sustainability and energy self-reliance. However, as the blending levels increase, concerns over its impact on vehicle engines and the economic burden on consumers are growing stronger.

What is Ethanol Blending?

Ethanol is a biofuel derived from sugarcane, maize, rice, or other organic waste. It is blended with petrol in various ratios (such as E10, E20) to reduce dependency on fossil fuels and ensure environmental benefits.

Benefits of Ethanol Blending:

• Reduction in greenhouse gas emissions
• Improvement in urban air quality
• Saves foreign exchange by reducing crude oil imports (₹1–1.5 lakh crore annually)
• Supports the rural economy and agro-industries
• Promotes renewable energy

India’s Policy Progress:

Key Steps to Promote Ethanol Blending:

1. Ethanol Blended Petrol (EBP) Programme – Active since 2003

• Initial blending: 1.53% (2014) → 20% (2025)
• Objective: Promote clean, sustainable, and locally produced fuel

2. National Biofuel Policy (2018)

• New feedstocks: Sugarcane juice, maize, spoiled potatoes, surplus FCI grains
• Solves agricultural surplus issues and provides new income to farmers

3. Financial and Regulatory Measures

• Fixed ethanol pricing by OMCs
• Interest subvention and capital support for distilleries
• GST on EBP reduced to 5%
• Long-Term Offtake Agreements (LTOAs) to ensure demand stability

4. Infrastructure and Technological Development

• PM-JI-VAN Yojana: Promotes 2G ethanol from crop residue and agri-waste
• Standards released for E20 and draft norms for E100 vehicles
• 17,000+ fuel stations now retailing E20; E100 pumps under deployment

5. Roadmap and Global Cooperation

• “Ethanol Blending Roadmap 2020–25” guides policy alignment
• Global Biofuels Alliance (GBA) – led by India for global biofuel standardisation

Technical and Environmental Concerns:

1. Corrosion and Engine Wear

• Ethanol is hygroscopic (absorbs moisture) →
  • Corrosion of metal parts
  • Damage to plastic and rubber seals/pipes
  • Fuel system clogging due to dislodged deposits

2. Reduced Fuel Efficiency

• As per NITI Aayog & MoPNG report:
  • 4-wheelers: 6–7% mileage loss
  • 2-wheelers: 3–4% mileage loss
  • No proportional reduction in fuel prices → consumer burden increases

3. Performance Issues

• High blends (E20–E85) may lead to:
  • Cold start issues
  • Jerky operation, rough idling, and lower acceleration in older engines

4. Limited Vehicle Compatibility

• Most two-wheelers are calibrated only for E10
• Lack of flex-fuel vehicles and retrofit guidelines for E20+

Industry Readiness and Structural Challenges:

Policy Recommendations:

1. Engine Compatibility

• Notify clear certification standards
• Incentivise rollout of flex-fuel vehicles for E20+

2. Compensating Mileage Loss

• Offer tax incentives for consumers
• Consider mileage-based subsidy schemes

3. Fuel Pricing Reforms

• Introduce separate pricing for blended fuels with lower efficiency

4. Infrastructure Modernisation

• Deploy ethanol-resistant pipelines, storage tanks, and dispensing units

5. Feedstock Diversification

• Focus on 2G ethanol from agri-waste
• Ensure balance with food security concerns

Conclusion

India’s ethanol blending initiative stands at the intersection of energy self-reliance, environmental protection, and agricultural development. Achieving the E20 target ahead of schedule is a milestone, but for the programme to be truly sustainable, it must:

• Prioritise consumer concerns
• Ensure technical compatibility
• Build robust infrastructure
• Provide clear policy incentives

Otherwise, ethanol risks becoming a ‘green fuel’ that erodes public trust due to unresolved issues.

India Electric Mobility Index (IEMI)

📌 Source: Economic Times (ET)
📅 Context: NITI Aayog has launched the India Electric Mobility Index (IEMI) 2024, the first-of-its-kind national tool to evaluate and rank the progress of States/Union Territories (UTs) in the electric vehicle (EV) transition.

❓ What is IEMI?

• The India Electric Mobility Index (IEMI) is a national benchmarking framework that evaluates all States and Union Territories on a score of 100.
• The scoring is based on parameters such as EV adoption, charging infrastructure readiness, and innovation efforts.

🎯 Objectives:

• To assess, compare, and guide States/UTs in their electric mobility transition journey.
• To align sub-national efforts with India’s net-zero emissions target by 2070.

📊 Key Evaluation Themes and Criteria:

IEMI evaluates states on 16 indicators across three major categories:

1. Transport Electrification Progress:
   • Monitors the adoption of EVs across passenger, freight, and public transport segments.
2. Charging Infrastructure Readiness:
   • Assesses deployment of public and private charging stations and the policy frameworks supporting EV infrastructure.
3. EV Research & Innovation Ecosystem:
   • Evaluates R&D ecosystem, manufacturing capacity, and technological progress in EV components.

🧩 Key Features:

• Comparative Scoring:
  • States are rated on a 0–100 scale, ensuring fair and data-driven performance evaluation.
• Interactive Dashboard:
  • The IEMI Dashboard enables real-time comparison, ranking, and analysis across states.
• Encouragement of Healthy Competition:
  • Promotes cooperative federalism through peer learning and competitive performance.
• Policy Guidance Tool:
  • Helps identify policy gaps, enabling corrective measures and effective fund allocation.
• Inter-Ministerial Coordination:
  • Supports investment planning, capacity building, and policy alignment across ministries.

📈 Trends & Rankings in IEMI 2024:

🏆 Top Performing States/UTs:

• Delhi, Maharashtra, and Chandigarh — ranked highest in EV readiness and innovation.

🇮🇳 Key National EV Trends:

• EV Share in Total Vehicle Sales:
  • Increased from 5% in 2018 to 7.7% in 2024, indicating rapid adoption.
• Total EVs on Road:
  • Over 5 million EVs on roads by June 2025, with 1.2 million registered in 2024 alone.
• EV Charging Infrastructure:
  • Over 25,000 public charging stations installed by October 2024.
  • Karnataka recorded the highest number of installations.
• EV Policy Coverage:
  • 29 States/UTs have notified EV policies; 4 more are in draft stage.

🟢 Significance of IEMI:

• Promotes Green Mobility:
  • Aligns sub-national EV efforts with India’s net-zero roadmap by 2070.
• Infrastructure Planning Support:
  • Highlights gaps in EV charging networks, aiding state-level rollout strategies.
• Boosts Make in India & R&D:
  • Strengthens the domestic EV manufacturing ecosystem and supports indigenous innovation clusters.