The government told Parliament on Monday that public sector oil marketing companies (OMCs) spent Rs 48,757 crore on purchasing ethanol in the Ethanol Supply Year (ESY) 2023-24, ₹73,996 crore in ESY 2024-25 and ₹49,577 crore in ESY 2025-26 till June. In a written reply in the Rajya Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi said PSU OMCs procure fuel-grade ethanol from feedstock made domestically from sugarcane and grains under the Ethanol Blended Petrol (EBP) programme.
501 Ethanol Manufacturing Units Register
The minister said state-owned oil companies procure ethanol from domestic sources, including sugarcane-derived feedstock such as C-heavy and B-heavy molasses, sugarcane juice and sugar syrup, as well as grain-derived feedstock such as spoiled grains, rice and maize left with the Food Corporation of India (FCI). The Minister further informed that till July 16, 2026, PSU OMCs had registered 501 ethanol manufacturing units for supply of denatured anhydrous ethanol under the Ethanol Blended Petrol Programme. Gopi said in a written reply that till 16.07.2026, public sector oil marketing companies (OMCs) have registered 501 ethanol manufacturing units for supply of denatured anhydrous ethanol under the Ethanol Blended Petrol (EBP) programme.
Companies also producing
According to the response, Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) – through their subsidiary HPCL Biofuels Limited – are also involved in the production of fuel-grade ethanol. IOCL has a daily production capacity of 228 kiloliters and has produced 712 kiloliters till June 30 in ESY 2025-26. BPCL has a capacity of 200 kiloliters per day and produced 76 kiloliters, while HPCL Biofuels has a capacity of 120 kiloliters per day and produced 9,373 kiloliters during this period.
Which state purchased ethanol-blended petrol?
The response also revealed that the highest sales of ethanol-blended petrol by PSU OMCs during ESY 2024-25 occurred in Uttar Pradesh (124.98 crore litres). This was followed by Maharashtra (110.66 crore litres), Tamil Nadu (92.18 crore litres), Karnataka (79.24 crore litres) and Gujarat (56.29 crore litres). The government said the registered supplier base and domestic procurement network are helping in implementing the ethanol-blended petrol program across the country.
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