State-run OMCs spent over Rs 1.72 lakh crore on ethanol procurement
UPSC / SSC current affairs note · IR
Why in news
The government informed Parliament that state-run Oil Marketing Companies (OMCs) have spent over Rs 1.72 lakh crore on ethanol procurement across three Ethanol Supply Years (ESYs). This highlights the government's push for ethanol blending and its financial commitment to the ethanol program.
Background
India has been promoting ethanol blending in petrol to reduce crude oil imports, support sugarcane farmers, and lower emissions. The target is to achieve 20% ethanol blending by 2025-26 (E20). OMCs are key buyers of ethanol from distilleries.
Key facts
Total ethanol procurement expenditure by state-run OMCs: over Rs 1.72 lakh crore.
ESY 2023-24: Rs 48,757 crore spent.
ESY 2024-25: Rs 73,996 crore spent.
ESY 2025-26 (up to June): Rs 49,577 crore spent.
The information was provided to Parliament on Monday.
Ethanol Supply Year (ESY) runs from November to October.
OMCs include Indian Oil, BPCL, HPCL, etc.
Prelims pointers
- OMCs: Oil Marketing Companies (e.g., IOCL, BPCL, HPCL)
- Ethanol Supply Year (ESY): November to October
- Ethanol blending target: 20% by 2025-26 (E20)
- National Policy on Biofuels (2018) sets ethanol blending roadmap
- Ethanol procurement is part of the Ethanol Blended Petrol (EBP) programme
Mains angles
- GS3: Energy security and ethanol blending policy – benefits and challenges
- GS3: Government subsidies and incentives for ethanol production
- GS3: Impact on sugar industry and farmers
- GS3: Environmental benefits of ethanol blending