India’s biofuel revolution under Prime Minister Modi: From sugarcane to bamboo, a new era of energy Independence
By Aseervatham Achary
India has long been dependent on fossil fuels to meet its energy needs, importing more than 80 percent of its crude oil from foreign countries. This has not only placed a massive burden on the economy but has also made the country vulnerable to global oil price fluctuations. However, since Prime Minister Narendra Modi assumed office in 2014, the country’s approach to energy security has undergone a historic transformation.
Under PM Modi’s visionary leadership, India has aggressively pushed the boundaries of alternative fuel production. What was once considered a distant dream has now become a remarkable reality. The Government has made unprecedented progress in promoting green and renewable energy, achieving significant milestones in solar energy, wind energy, hydropower, and most notably in biofuel production and blending with petroleum products.
Biofuel production has witnessed a remarkable surge under the Modi Government. India successfully achieved its target of 20 per cent ethanol blending in petrol in July 2025, a full five years ahead of the original 2030 deadline. This achievement did not occur by chance. It was the result of meticulous planning, bold policy reforms, and relentless execution by a Government that is determined to make India energy self-reliant.
To achieve these results, the Government introduced a series of strategic initiatives. These included timely policy interventions, subsidy-based schemes, interest subvention support, and tax exemptions to promote domestic production of biofuels.
Government’s policy push for bio-energy
The Modi Government launched the National Bioenergy Programme to promote the use of bioenergy and waste-to-energy technologies. The objective is clear-to strengthen clean energy alternatives, enhance energy security, and support sustainable development.
Since 2014, the Government has undertaken several path-breaking measures. These include expanding the permitted feedstock for ethanol production, setting up an administered pricing mechanism for sugarcane-based ethanol, and reducing the GST rate on ethanol to just 5 per cent. Various Ethanol Interest Subvention Schemes were introduced between 2018 and 2022 to support ethanol production from both molasses and food grains. Oil Marketing Companies have also signed long-term offtake agreements with dedicated ethanol plants to ensure stability in demand.
The Government also notified the Pradhan Mantri JI-VAN Yojana to provide financial support for integrated bio-ethanol projects using lignocellulosic biomass and other renewable feedstocks. Over 908 crore has been sanctioned under this scheme for six commercial-scale and four demonstration-scale 2G bio-ethanol projects. Among these, the Panipat plant has already been dedicated to the nation, while three other major projects are nearing completion.
The promotion of maize as a primary grain-based feedstock for ethanol production is another major initiative. Through Indian Council of Agricultural Research and the Indian Institute of Maize Research, over 788 demonstrations of improved farming techniques were conducted during Kharif 2024 across 15 States. In Rabi 2024-25, these techniques were extended to 720 acres in the catchment areas of ethanol industries.
Specialised training programs were also organised for distillers and seed producers to strengthen the supply chain. In parallel, the Government introduced the Oilfields Regulation and Development Amendment Bill, 2024. This aims to increase domestic production of oil and gas, reduce import dependency, attract investment, and facilitate easier exploration and production of hydrocarbons. As a result of policy reforms, the area designated as “No Go” for exploration has been reduced dramatically from over 13 lakh square kilometres to just 24,832 square kilometres, unlocking nearly 99 per cent of India’s offshore potential for future exploration.
Measurable outcomes
These reforms have delivered phenomenal results. Ethanol blending in petrol has increased from a mere 1.5 percent in 2014 to 20 per cent in 2025, marking a nearly 13-fold increase. Ethanol production rose from Rs 38 crore litres in 2014 to 661.1 crore litres by June 2025. This led to savings of approximately 1.36 lakh crore in foreign exchange and generated 1.96 lakh crore in payments to distilleries. Additionally, farmers received 1.18 lakh crore, strengthening rural incomes and supporting the agricultural economy.
From an environmental perspective, the switch to ethanol-blended petrol has helped reduce carbon dioxide emissions by nearly 698 lakh tonnes. This not only contributes to India’s international climate commitments but also sets a global example of how sustainability and development can go hand in hand.
Bamboo: The new frontier in biofuel
While sugarcane and grains have played a major role in ethanol production, the Modi Government has now turned its focus to another promising and highly sustainable source of biofuel-bamboo.
Known for its rapid growth and high biomass yield, bamboo is now being recognized as a future-ready feedstock for green fuel.
Bamboo is one of the fastest-growing renewable natural resources on the planet. It matures within just three to five years and regenerates naturally after every harvest. As a plant with one of the highest carbon sequestration capacities, bamboo is both an energy solution and a climate solution.
India is the second richest country in bamboo genetic resources after China. Bamboo covers 16.7 percent of the nation’s forest area and 3.4 percent of its geographical area. The Northeastern Region alone contributes 28 percent in terms of bamboo area and 66 percent in terms of bamboo availability.
Under the PM Modi’s push for Atmanirbhar Bharat. Bamboo is being promoted not just as a construction or craft material, but as a strategic bioenergy asset.
Bamboo-based biofuel projects: A game changer
India’s first bamboo-based bioethanol refinery has been established in Golaghat district of Assam. Developed by Numaligarh Refinery Limited in collaboration with a Finnish technology partner, this State-of-the-art facility will use over five lakh metric tonnes of green bamboo annually to produce around 49,000 metric tonnes of ethanol.
With a project cost of 4,000 crore, this refinery avoids the food-versus-fuel dilemma and uses surplus bamboo, enhancing both energy security and rural livelihoods. The facility employs second-generation ethanol technology, which is more efficient and environmentally friendly. Prime Minister Modi is going to inaugurate the plant in September. This will be India’s first commercial bamboo bio-refinery and marks a major milestone in the country’s clean energy journey.
Bamboo bio-refinery to empower 30,000 NE families
A transformative bamboo-based bio-refinery coming up in Assam is set to uplift over 30,000 rural families across Assam, Arunachal Pradesh, Meghalaya, and Nagaland. Spearheaded under the visionary leadership of Prime Minister Narendra Modi, this initiative will provide a stable income to bamboo farmers by creating a long-term market for their produce. The plant, which will use over five lakh metric tonnes of bamboo annually, marks a major step in linking sustainable green energy with rural prosperity. It promises not only to boost livelihoods but also to position bamboo as a key player in India’s clean energy future.
NTPC’s Bamboo Initiative
The National Thermal Power Corporation (NTPC) has also announced a path-breaking initiative to use bamboo biomass in its Solapur power plant. NTPC plans to replace up to 30 percent of coal with bamboo biomass.
Chairman Gurdeep Singh Stated that the plant consumes four million tonnes of coal annually, and even an initial 10 percent blend would require four lakh tonnes of bamboo biomass.
NTPC is prepared to immediately purchase bamboo and sign long-term agreements with Farmer Producer Companies. This move will directly benefit farmers in Solapur, Latur, and Dharashiv districts.
A Green and Self-Reliant India
Under Prime Minister Narendra Modi, India is not just meeting its energy needs, it is reshaping its energy future.
From reducing import dependency and saving foreign exchange to empowering farmers and protecting the environment, the Government’s approach to biofuels is comprehensive and visionary.
This is not a story of gradual reform. It is a story of rapid, determined, and mission-mode transformation. India today is setting global benchmarks in clean energy, and the biofuel revolution is a shining example of what strong leadership and clear vision can achieve.
The future of India’s energy is green. The future is bamboo. And the future is being shaped today, under the bold and decisive leadership of Prime Minister Narendra Modi.
(The Writer is former Civil Servant, is presently the National Coordinator for Digital Library, Library & Documentation, BJP)
This article has been republished from The Daily Pioneer.