In this exclusive interview with Dr. Anil Kumar Sinha, Chief Scientist at CSIR–Indian Institute of Petroleum, India Business & Trade explores how India’s biofuel industry is evolving from a sugarcane-based model to a multi-feedstock, innovation-driven ecosystem aligned with national energy and climate goals.
Dr. Sinha, a pioneer in catalysis and renewable fuel technologies, unpacks the policy, technological, and market enablers that helped India surpass its 20% ethanol blending target well before the 2030 deadline. He sheds light on how government incentives, second-generation biofuel R&D, and cross-sector collaboration have transformed the biofuel landscape—extending its reach from petrol blending to sustainable aviation fuel and compressed biogas.
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IBT: How has the biofuel industry in India evolved over time, and what were some of its key turning points?
Dr. Anil Kumar Sinha: The biofuel sector in India has seen a transformative journey, primarily driven by shifts in government policy and progress in technology. One of the earliest turning points was the launch of the Ethanol Blending Programme, followed by the introduction of the National Policy on Biofuels in 2009. This policy was later revised in 2018 to incorporate second-generation biofuels and compressed biogas, giving the sector new momentum. The transition gained further pace around 2020 when ethanol production began using surplus food grains. This move was supported by physical incentives for setting up non-molasses-based distilleries and a new ethanol procurement policy.
With an increase in sugar and molasses production, the ethanol industry began to expand rapidly, and by 2022, India achieved its 10% ethanol blending target. Remarkably, by 2025, the country reached the 20% blending milestone well ahead of the earlier 2030 deadline. Schemes such as SATAT and GOBARDHAN also played a vital role in broadening the scope to compressed biogas, further aligning the sector with India’s larger climate and energy goals. Importantly, biofuel applications have now extended into the aviation and transport sectors, with a long-term view of achieving 27% ethanol blending by 2030.
IBT: What were the major policy and technological enablers that helped India reach the 20% blending target, and what challenges did the sector overcome?
Dr. Anil Kumar Sinha: Reaching the 20% blending target required a convergence of proactive policymaking, technological readiness, and strong industry participation. A series of incentives—such as higher procurement prices for ethanol, reduced GST rates, and subsidized loans for ethanol plants—created a favorable environment. Long-term offtake agreements between oil marketing companies and ethanol producers also offered financial assurance to the industry.
The Pradhan Mantri JI-VAN Yojana was expanded to include advanced biofuels, and the target year for 20% blending was brought forward, creating a sense of urgency. On the technology side, distilleries adopted dual-feed mechanisms using both sugar and maize, and considerable investment was made in second- and third-generation ethanol production. Equally critical was the development of E20-compliant vehicles, which addressed concerns about fuel compatibility.
Challenges did arise, particularly around feedstock availability and cost, due to the variability in sugarcane and grain yields. However, government incentives helped stabilize supply. Storage infrastructure had to be scaled up to accommodate increased ethanol volumes. The financial viability of ethanol plants was also supported through public-private partnerships and better pricing mechanisms. Public skepticism around ethanol’s impact on engine performance and mileage was addressed through awareness campaigns, ultimately leading to broader acceptance.
IBT: As India looks ahead, what should be the next set of priorities for the government and other stakeholders to sustain and strengthen the biofuel ecosystem?
Dr. Anil Kumar Sinha: The immediate priority is to diversify feedstock sources based on regional availability across India. While progress has been made, there’s more ground to cover in tapping into agricultural residues, bamboo, municipal waste, and other non-food sources. Technological advancements must continue in parallel, especially for converting lignocellulosic biomass into usable fuels.
Public awareness needs to expand in line with higher blending targets. It’s essential that citizens understand the benefits of ethanol and other biofuels, not just for the environment but also for fuel efficiency and national energy security. Moreover, building a skilled workforce and encouraging entrepreneurship, especially in rural areas, is critical to sustaining growth.
Establishing a minimum support price for biofuel-linked crops can offer farmers a predictable income, while investments in integrated biorefineries can make biofuel production more economically viable by generating co-products like furfural. Advanced fuels such as biohydrogen and synthetic hydrocarbons also need greater research funding and commercialization efforts.
Logistics and infrastructure improvements, including real-time stock monitoring and efficient supply chains, will ensure ethanol availability meets demand. Finally, streamlining regulatory procedures and offering financial incentives will attract further investment and fast-track project approvals.
IBT: With India being a founding member of the Global Biofuel Alliance (GBA), how can the country align its domestic roadmap with global objectives? And what can be learned from countries like Brazil and the US?
Dr. Anil Kumar Sinha: India is fully aligned with the Global Biofuel Alliance, working closely with other member nations to build a collaborative framework. We are especially looking at global best practices in feedstock utilization, technology deployment, and policy implementation. From Brazil, for instance, we’ve learned how to maximize the potential of sugarcane, not just through ethanol production but also by converting byproducts like bagasse using 2G technology.
The US, on the other hand, has demonstrated how maize-based ethanol can be scaled to support both domestic energy needs and farmer livelihoods. These models have influenced India’s own strategies, particularly the encouragement of maize cultivation in states like Madhya Pradesh, Bihar, and Tamil Nadu. The GBA will also help standardize certification protocols and facilitate technology transfer, both of which are crucial for advancing second-generation ethanol production and enabling biofuel trade.
IBT: What is the role of advanced biofuels in India’s energy transition, and how can their adoption be accelerated?
Dr. Anil Kumar Sinha: Advanced biofuels will be pivotal for India’s clean energy shift. These fuels, especially 2G ethanol, sustainable aviation fuel (SAF), and biodiesel from agri-waste, offer higher carbon savings and less dependence on food crops. Their use will be particularly important in sectors like aviation and heavy-duty transport, where alternatives such as batteries are not feasible.
To accelerate their adoption, we need mandatory blending mandates for aviation and diesel fuels, supported by tax breaks, subsidies, and grants similar to those offered for ethanol. Stronger R&D efforts will also be essential to reduce the cost of producing fuels from lignocellulosic biomass. Additionally, improving the collection, segregation, and transportation of agricultural waste is key to ensuring a steady supply of feedstock.
International cooperation and knowledge exchange under platforms like the GBA will also aid in making advanced biofuels more accessible and economically viable.
IBT: Finally, considering India’s unique agricultural context, what would a future-ready and inclusive biofuel strategy look like?
Dr. Anil Kumar Sinha: A future-ready strategy must prioritize sustainability, equity, and innovation. India needs to reduce its reliance on sugarcane and grain by shifting to agri-residues like straw and bagasse. Emphasis on second-generation biofuels will help minimize the food-versus-fuel conflict. Emerging technologies, including algae-based biofuels enhanced by biotechnological innovations, also hold great promise.
The ethanol blending programme should continue scaling up toward the 27–30% mark, supported by compatible vehicle technologies and robust supply chains. Decentralized production models that link rural livelihoods to biofuel manufacturing can spur inclusive growth. At the same time, rigorous environmental assessments—covering land use, water consumption, and biodiversity—must be integrated into every stage of the biofuel lifecycle.
A combination of sound policy, targeted incentives, public-private collaboration, and forward-looking R&D will be key to ensuring that biofuels play a central role in India’s journey toward energy independence and environmental sustainability.
Dr Anil Kumar Sinha is the Chief Scientist at CSIR – Indian Institute of Petroleum, Dehradun. A leading expert in catalysis and hydroprocessing, Dr. Sinha has made significant contributions to the development of biofuels and renewable transportation fuels in India.
His work focuses on transforming plant-based feedstocks into cleaner energy solutions and has earned national recognition, including the CSIR Technology Award for hydroprocessed bio-aviation fuel. As India deepens its commitment to green energy, Dr. Sinha’s research plays a vital role in advancing sustainable fuel technologies aligned with national and global energy goals
