A detailed proposal is expected soon, particularly emphasising large commercial kitchens like hotels and restaurants. (Image: AI-generated) The government is weighing ethanol as an alternative cooking fuel for commercial applications, according to a report. The proposal seeks to divert surplus ethanol capacity of about 1,000 crore litres towards cooking, with a detailed white paper expected to be submitted to an inter-ministerial panel in the coming weeks, sources told Moneycontrol. As LPG supply disruptions expose vulnerabilities in India’s import-dependent energy mix, the country sits on surplus biofuel. The government now plans to see if ethanol can be used to supplement LPG. “Ethanol may be seen as a complementary clean cooking fuel, not a replacement for LPG. It can reduce dependence on imports, enhance energy resilience, and provide a viable pathway to utilise surplus ethanol, particularly in large commercial cooking applications such as hotels, airports and restaurants,” one of the sources told Moneycontrol. The source added that the government may ideally want to start with commercial kitchens such as hotels, airports, and restaurants rather than households because that is where the transition can be implemented more efficiently at scale. Also Read: PM Modi Flags E20 Fuel as Key to Cutting Oil Imports Amid Middle East Crisis - Here's Why In March, Prime Minister Narendra Modi had highlighted the importance of India's ethanol blending programme while addressing the Lok Sabha. As tensions in the Middle East disrupted energy supplies from the Gulf, particularly through the crucial Strait of Hormuz, PM Modi pointed to E20 petrol (fuel blended with 20% ethanol) as a critical buffer against external shocks. “In this time of crisis, another preparation of the country is proving very useful: in the last 10–11 years, unprecedented work has been done on ethanol production and blending,” the Prime Minister said in the Lower House. He noted that India's ethanol blending capacity has seen a dramatic rise over the past decade, from just about 1% earlier to nearly 20% today. “A decade ago, the country had a capacity of only 1% ethanol blending. Today, we are close to achieving 20% ethanol blending in petrol. Due to this, in the last year, we have had to import about 4.5 crore barrels less oil,” he added. The ethanol ecosystem has expanded rapidly in recent years, with production capacity now estimated at around 2,000 crore litres, supported by over 380 operational distilleries, along with more facilities under development. India has already achieved its E20 blending target ahead of schedule in 2025, marking a major milestone in its energy transition efforts. The idea behind E20 fuel, a blend of 80% petrol and 20% ethanol, is to reduce the nation's oil import bill, cut carbon emissions, and support sugarcane farmers who supply the ethanol. For the Latest news, India News and breaking stories from around the world, visit Times Now for live coverage and in-depth reporting. Ananya is a journalist with a strong grounding in breaking news and a deep-rooted passion for geopolitics. She has 6 years of experience in TV and Dig... View More