India is making significant progress in the ethanol sector, with its production and blending levels increasing year after year. This growing momentum is not only transforming the country’s energy landscape but also driving economic development and fostering sustainable rural growth.
Tarun Sawhney, Vice Chairman and Managing Director of Triveni Engineering and Industries Ltd (TEIL), shared insights into these developments while speaking to ChiniMandi. He commended the country’s progress, stating: “India achieving the E20 ethanol blending target five years ahead of schedule, is a landmark development in the country’s energy transition. It reflects the strength of India’s policy ecosystem and the proactive collaboration between government, industry, and farmers. The Ethanol Blending Programme’s progression from 1.5% in 2014 to 20% in 2025 demonstrates what is possible with long-term planning and institutional alignment. In the last decade, ethanol production has increased from 38 crore litres in 2014 to over 661 crore litres by June 2025, translating into foreign exchange savings of ₹1.36 lakh crore. At the same time, over ₹3 lakh crore in cumulative payments to distilleries and farmers has catalysed rural development and accelerated the formalisation of India’s biofuel economy.”
Looking to the future, Sawhney stressed the importance of continued collaboration and strategic planning as the country moves beyond the E20 milestone. “With the E20 milestone now achieved, attention must turn to the next phase,” he said. “The government, through NITI Aayog and the Ministry of Petroleum & Natural Gas, is rightly engaging with stakeholders across agriculture, energy, and transport to chart the roadmap for higher blends. However, realising this ambition will require commensurate investment in storage capacity, blending infrastructure, and multimodal logistics. Addressing these structural bottlenecks will be key to ensuring continuity and scale.”
Sawhney also underlined the importance of adopting next-generation technologies to ensure the future sustainability of the biofuel sector. “Equally important is the integration of next-generation technologies such as second-generation (2G) ethanol from agricultural residues that align with food security and waste-to-energy imperatives. A predictable, formula-based pricing mechanism, linked to the fair and remunerative price (FRP) of sugarcane, will help de-risk investments and reinforce industry confidence. In parallel, India must also begin laying the groundwork for ethanol’s role beyond conventional blending whether through ethanol-to-hydrogen pathways, Sustainable Aviation Fuel (SAF), or Compressed Biogas,” he added.
As a leader in the biofuels space, Triveni Engineering & Industries Ltd remains committed to advancing India’s biofuel vision. Sawhney reaffirmed the company’s dedication to supporting the national effort, noting: “At Triveni Engineering & Industries Ltd (TEIL), we remain committed to supporting this national effort. Our distillation infrastructure is equipped for multi-feedstock operations, including molasses, grains, and maize. This design philosophy not only enhances output resilience but also aligns with the broader objective of building a diversified and sustainable biofuel value chain. As the country moves toward deeper decarbonisation and energy security, we see ethanol continuing to play a foundational role in shaping India’s low-carbon future.”
