501 Companies Supplying Ethanol to India’s Oil Firms, 19 From Gujarat Among Beneficiaries
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Summarized by AI; it may make mistakes. Check important info
The government’s E20 petrol programme has sparked debate among motorists over mileage concerns, but the ethanol supply business has expanded rapidly, creating a multi-billion-rupee market for producers across India. The Centre has released an official list of 501 ethanol manufacturing units supplying fuel-grade ethanol to public sector oil marketing companies (OMCs) for petrol blending, including 19 companies from Gujarat.
The disclosure came in response to questions raised in the Rajya Sabha, where Minister of State for Petroleum and Natural Gas Suresh Gopi shared details about ethanol suppliers, procurement spending and the government’s position on concerns surrounding E20 fuel.
Ethanol Procurement Crosses ₹1.72 Lakh Crore in Three Years
Public sector oil companies, including Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL), have significantly increased ethanol procurement under the Ethanol Blended Petrol (EBP) Programme.
Government data shows that OMCs spent more than ₹1.72 lakh crore on ethanol purchases over the last three ethanol supply years:
- 2023–24: 679.04 crore litres procured worth ₹48,757.01 crore, the average procurement price was around ₹71.80 per litre
- 2024–25: 1,033.31 crore litres procured worth ₹73,996.48 crore ,the average ethanol procurement price was around ₹71.62 per litre
- 2025–26 (up to June 2026): 705.43 crore litres procured worth ₹49,577 crore, the average ethanol procurement price was around ₹70.28 per litre
The ethanol is produced using sugarcane juice, molasses, maize and damaged food grains.
Maharashtra Leads Ethanol Supplier List
According to government records dated 16 July 2026, a total of 501 ethanol manufacturing units are registered with oil companies for supplying ethanol under the blending programme.
States with a large number of registered suppliers include:
- Maharashtra: 145 units
- Uttar Pradesh: 78 units
- Karnataka: 58 units
- Madhya Pradesh: 33 units
- Bihar: 22 units
- Punjab: 20 units
- Gujarat: 19 units
The suppliers include cooperative sugar mills, private distilleries and biofuel manufacturers.
19 Gujarat Companies Supplying Ethanol
The official list includes 19 ethanol suppliers from Gujarat:
- Adhas Biofuel Refinery Private Limited
- Grenfuel Distilleries Private Limited
- Granspan Nutrients Private Limited
- Granspan Nutrients Private Limited (ENL-II)
- Growthpath Petrochem Private Limited
- Luna Chemical Industries Private Limited
- Sahakari Khand Udyog Mandal Limited, Gandevi
- Shaktichem Private Limited
- Shri Chalthan Division Khand Udyog Sahakari Mandali Limited
- Shri Ganesh Khand Udyog Sahakari Mandali Limited
- Shri Kamrej Division Khand Udyog Mandali Limited
- Shri Khedut Sahakari Khand Udyog Mandali Limited, Pandavai
- Shri Madhi Division Khand Udyog Mandali Limited
- Shri Mahuva Pradesh Cooperative Sugar Industry Cooperative Limited
- Shri Narmada Sugar Industry Cooperative Limited
- Shri Sayan Division Cooperative Sugar Industry Cooperative Limited
- Shri Goverdhan Sugar Industries
- True Green Bio Energy Limited
- Vector Infraprop Private Limited
Motorists Raise Mileage Concerns Over E20 Petrol
While the ethanol industry has benefited from the expansion of the blending programme, many vehicle owners have raised concerns about E20 petrol.
A recent survey by LocalCircles found that:
- 53% of vehicle owners expressed dissatisfaction with E20 petrol
- 66% claimed that ethanol-blended petrol had reduced their vehicle mileage
The concerns have mainly centred around fuel efficiency and compatibility with older vehicles.
Government Rejects Claims of Engine Damage
Responding to concerns in Parliament, the government said there is no verified evidence linking E20 fuel with widespread engine damage, fuel pump failures or vehicle breakdowns.
The Ministry stated that:
- More than 23 crore vehicles are currently operating on E15+ and E20 blends
- This includes around 20 crore two-wheelers and 3 crore petrol cars
- The transition followed testing and evaluations conducted by agencies including NITI Aayog, Automotive Research Association of India (ARAI), Society of Indian Automobile Manufacturers (SIAM) and Indian Institute of Petroleum (IIP)
No Plan to Increase Ethanol Blend Beyond 20%
The government has clarified that there is currently no proposal to increase ethanol blending beyond the existing 20% limit.
Any future changes, officials said, would require scientific assessment and consultation with stakeholders.
The Ministry also confirmed that there is no plan to introduce separate petrol variants with lower or zero ethanol blending at selected fuel stations.
Ethanol Policy’s Impact on Consumers and Industry
The government has defended the ethanol blending programme as a way to reduce dependence on imported crude oil, save foreign exchange, cut carbon emissions and increase farmers’ income.
However, petrol prices remain linked to international crude rates and taxation policies, meaning consumers have not seen a direct reduction in fuel prices. While motorists continue to debate mileage concerns, ethanol manufacturers have gained access to a growing assured market backed by government procurement.
