Indian Economy News

Cabinet amends biofuels policy, advances ethanol blending target to 2025-26

In an effort to reduce dependency on imported oil for satisfying the country's energy demands, the Union Cabinet approved pushing the aim of blending 20% ethanol in petrol by 5 years to 2025-26, as well as enabling new feedstocks for biofuel production.

According to an official statement, the Cabinet, led by Prime Minister Mr. Narendra Modi, adopted the amendments to the National Policy on Biofuels at its meeting on May 18.

The key change is to bring forward the deadline for blending 20% ethanol into petrol (20% ethanol, 80% petrol) from 2030 to 2025-26. Currently, around 10% ethanol is blended into petrol.

These measures will assist India, which imports 85% of its oil, in reducing its dependency on oil imports.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.