India’s Ethanol Drive: PSUs Pump ₹1.72 Lakh Crore into Fuel Blending

Public Sector Oil Marketing Companies (OMCs) have spent around ₹1.72 lakh crore on ethanol procurement over the last three Ethanol Supply Years (ESYs), according to an ANI news report citing data shared by the government in Parliament.  

Procurement stood at ₹48,757 crore in ESY 2023-24, rose to ₹73,996 crore in ESY 2024-25, and reached ₹49,577 crore up to June in ESY 2025-26. 

Domestic Sources Continue to Supply Ethanol 

The ethanol procured under the Ethanol Blended Petrol (EBP) Programme comes from domestic producers. The feedstock includes C-heavy and B-heavy molasses, sugarcane juice and sugar syrup, along with damaged foodgrains, surplus rice held by the Food Corporation of India (FCI), and maize.  

The government said PSU OMCs continue to source fuel-grade ethanol from these domestic raw materials. 

Over 500 Manufacturing Units Registered 

As of 16 July 2026, 501 ethanol manufacturing units had been registered with PSU OMCs to supply denatured anhydrous ethanol under the EBP Programme.  

The registered units form part of the supply network used by oil marketing companies for ethanol procurement across the country. 

PSU Oil Companies Add to Supply 

Apart from procurement, state-run oil companies are also producing fuel-grade ethanol. Indian Oil Corporation (IOCL) has an installed capacity of 228 kilolitres per day and produced 712 kilolitres up to 30 June in ESY 2025-26.  

Bharat Petroleum Corporation (BPCL) has a capacity of 200 kilolitres per day and produced 76 kilolitres, while HPCL Biofuels Ltd produced 9,373 kilolitres against an installed capacity of 120 kilolitres per day. 

Uttar Pradesh Tops Ethanol-Blended Petrol Sales 

Among states, Uttar Pradesh recorded the highest sale of ethanol-blended petrol by PSU OMCs during ESY 2024-25 at 124.98 crore litres.  

It was followed by Maharashtra with 110.66 crore litres, Tamil Nadu at 92.18 crore litres, Karnataka at 79.24 crore litres, and Gujarat at 56.29 crore litres. 

Read More: India's Natural Gas Consumption Drops 6.5% in Q1 FY27 Amid Costly LNG Imports! 

Conclusion 

The figures highlight the scale of ethanol procurement by PSU OMCs over the past three supply years, along with the expansion of domestic production and supply infrastructure. 

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