A recent report by the International Energy Agency (IEA) said that India is set to become the third-largest market for ethanol in the world after the US and Brazil by 2026.
Ethanol is claimed as less pollutant compared to petrol because of its biofuel nature. It also costs lesser, allowing people to save more.
As a result, the Indian government has resolved to meet the target of 20% ethanol blending in petrol by 2025. Earlier the target was set for 2030.
The government has already directed oil CPSEs (Central Public Sector Enterprises) to set up second generation (2G) ethanol bio-refineries in different parts of the country to meet its target.
It has also lowered the goods and service tax (GST) on ethanol meant for blending with gasoline from 18% to 5% as it looks to curb dependence on imported fuels.
For more details, you can check out our list of sugar stocks.
You can also check out this article to find out the top 4 ethanol stocks in India.
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