Lucknow: Ethanol blending of petrol in Uttar Pradesh rose from 12.4% in 2022-23 to 14% in 2023-24, in a development that reflected the state's progress in achieving the national target to promote cleaner, renewable energy sources and reduce dependence on imported oil.
Nationally, ethanol blending increased from an average of 12.06% to 13.8% between 2022-23 and 2023-24, according to the latest data from the Petroleum Planning Analysis Cell, under the Union Ministry of Petroleum. Govt has fixed a target of 20% ethanol blending by 2030.
Ethanol blending in petrol helps in reducing carbon emissions, promoting the use of domestically produced ethanol (mostly derived from sugarcane and other agricultural products), and supporting the rural economy by creating a market for agricultural by-products. Experts said that the step was a key part of India's strategy of transitioning to greener energy while contributing to global climate goals.
Data also show that UP was amongst the top 10 states where ethanol blending was 14% and more. The other states which registered a quantum jump in ethanol blending included Delhi, Bihar, Chandigarh, Punjab, Himachal Pradesh, Uttarakhand, Jharkhand, Haryana, Arunachal Pradesh, and Nagaland. In these states, ethanol blending rose by a maximum of 2%, data show. UP, in fact, emerged as the biggest ethanol supplier to the Oil Marketing Companies (OMCs) in recent times.
In 2023-24, it supplied 73.37 crore litres of ethanol to the OMCs. This was more than Maharashtra and Tamil Nadu, which supplied 65.30 crore litres and 54.27 crore litres during the same period.
Industry data show that ethanol production in UP rose from 153.71 crore litres to 180 crore litres between 2022-23 and 2023-24. The leap came against the backdrop of increased cane cultivation – cane area increased from 28.53 lakh hectares in 2022-23 to 29.66 lakh hectares in 2023-24. Likewise, cane production also increased from 2394 lakh tonnes to 2494 lakh tonnes during the same period.
The installed capacity of ethanol production in UP in 2024-25 stands at 223.9 crore litres, which was second only to Maharashtra's 305.1 crore litres. Industry experts said that being an ethanol surplus state, UP was in a robust position to export the product to other states as well.
An increase in ethanol production in UP also comes against the backdrop of the state govt decision to divert a good part of molasses – primarily used for the manufacture of country liquor – for ethanol production. The state govt last year lessened the quota of molasses for the manufacture of country liquor from 26% to 25%. This year, however, the quota is back to 26%, industry sources said.
