ISMA has represented to the PMO for consideration of a policy proposal for the adoption of ethanol-based cooking solutions as a complementary clean fuel within India’s cooking energy framework.
“India’s clean cooking transition, while significantly advanced under the Pradhan Mantri Ujjwala Yojana (PMUY), continues t o exhibit structural dependence on imported Liquefied Petroleum Gas (LPG), with approximately 60% of domestic demand met through imports. Such dependence has direct implications for fiscal stability, subsidy burden, and energy security, particularly in the context of evolving global supply-side uncertainties,” the letter states.
The letter said that India has developed a robust ethanol ecosystem, with production capacity exceeding 2,000 crore litres, supported by the National Policy on Biofuels (NBP) and the Ethanol Blended Petrol (EBP) Programme. This presents a strategic opportunity t o extend ethanol utilisation into clean cooking applications.
ISMA in the letter has outlined several advantages of ethanol-based cooking solutions, as given below:
- Clean combustion with negligible soot and reduced emissions
- Comparable utility to LPG for domestic and commercial use
- Flexible, low-cost access through small refill formats (PAY model)
- Ease of storage and distribution, especially in remote geographies
- Potential use of hydrous ethanol, improving cost efficiency
- Alignment with energy security and Atmanirbhar Bharat objectives
A calibrated substitution (even ~20%) could potentially reduce LPG demand by ~ 6 million tonnes annually, resulting in reduced import dependence and subsidy burden.
ISMA said that certain policy measures are required:
- Policy Recognition: Notify ethanol as an approved clean cooking fuel within national energy frameworks.
- Access Models: Enable Pay-As-You-Go (PAYG) and decentralised distribution mechanisms.
3 . Existing Supply Integration: Leverage OMCs, fuel retail outlets, and cooperative networks for distribution.
4 . Transitional Support: Provide targeted incentives/pilot support for ecosystem development.
5 . Scheme Convergence: Integrate with MUY and other livelihood/energy programmes.
“The proposed intervention offers a pragmatic pathway to enhance energy resilience, reduce fiscal burden, and expand clean cooking access by leveraging existing domestic ethanol capacity. It further advances a citizen-centric clean energy transition, enabling energy access with dignity while strengthening India’s Atmanirbhar energy ecosystem,” according to the letter.
The Association remains committed to supporting the Government in achieving India’s biofuel and energy transition goals, and would be pleased to provide any further inputs that may assist policy deliberations.
