Ethanol Capacity
Industry added most ethanol capacity without govt consent
This story was originally published at 15:49 IST on 30 March 2026
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NEW DELHI – Most of the ethanol production capacity added in recent years have been undertaken by distilleries on their own, not with the concurrence of the government, according to the Parliamentary Standing Committee on Consumer Affairs, Food and Public Distribution, chaired by Member of Parliament Kanimozhi Karunanidhi. India has an estimated excess ethanol production capacity of 900 million lites, which the committee said was not a "very high order."
"It is also correct, much of the capacity that has got created has not come with the consent or the concurrence of the department. People have on their own undertaken this capacity," the committee said in a report earlier in March. According to the report, the country has 19.9 billion litres of ethanol production capacity. Assuming plants run on 90?pacity utilisation, effective ethanol availability is estimated at 17.9 billion billion litres of ethanol annually.
About 12.0 billion litres of ethanol is required to maintain 20% blending in petrol. Out of the 17.9 billion litres of capacity available, 12 billion litres will be supplied to public oil marketing companies. "About 150 crore (1.5 billion) litres is supplied to the private Oil Marketing Companies of Reliance, Adani group, etc.;," the committee said.
Industrial demand from sectors such as chemicals and pharmaceuticals is estimated at 3.5 billion litres of ethanol. "So, the total requirement that we have is about 1,700 crore litres, against which the capacity is 1,790 crore litres. So, capacity is, maybe 90 crore litres in excess, but it is not that it is to a very high order," the report said. End
Reported by Afra Abubacker
Edited by Avishek Dutta
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