Public Sector Oil Marketing Companies (OMC) invested ₹48,757 crore on ethanol procurement during Ethanol Supply Year (ESY) 2023-24, ₹73,996 crore during ESY 2024-25 and ₹49,577 crore up to June in ESY 2025-26, according to the government’s statement on the first day of monsoon session on Monday.
In a written response in the Rajya Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi stated that domestic sugarcane and grain-based feedstocks is the primary source of ethanol for PSU OMCs under the Ethanol Blended Petrol (EBP) Programme.
"OMCs procure ethanol from domestic sources, including sugarcane-based feedstocks such as C-heavy and B-heavy molasses, sugarcane juice and sugar syrup, as well as grain-based feedstocks including damaged foodgrains, surplus rice with the Food Corporation of India (FCI) and maize," the minister stated.
The ministry also notified that by July 16, 2026, PSU OMCs registered 501 ethanol manufacturing units for the delivery of denatured anhydrous ethanol under the Ethanol Blended Petrol Programme.
Furthermore, as per the written reply Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), through its subsidiary HPCL Biofuels Ltd, are also directly involved in producing fuel-grade ethanol.
