The Indian government is planning to blend ethanol with diesel, following the success of ethanol blending in petrol. According to sources, there are plans to mix 5% ethanol in diesel. This blending process is still in the testing phase, with ARAI (Automotive Research Association of India) working on it. Soon, OMCs (Oil Marketing Companies) will be asked to test this mixture on heavy vehicles.

The government had already started blending ethanol with petrol, and now they are considering doing the same with diesel. Recently, a meeting was held with the PMO (Prime Minister’s Office) and relevant ministries to discuss this matter. The testing of ethanol blending in BS-VI (Bharat Stage VI) vehicles is still pending.

The decision to blend ethanol with diesel comes after the government’s success in achieving a 15% ethanol blending ratio in petrol in May for the first time. The target is to reach a 20% ethanol blending ratio in petrol within the next two years. The main reasons for increasing ethanol in diesel and petrol are to reduce environmental pollution and decrease India’s dependence on crude oil imports.

Benefits for Sugar Companies Producing Ethanol:
This development is expected to benefit sugar companies that produce ethanol, such as Praj Industries and India Glycols. Currently, Praj Industries’ stock is trading around ₹718, with a daily high of ₹729.60 and a low of ₹712. The stock has seen fluctuations, but it has increased by 51.21% in the past year and 113.45% in the past three years.

Similarly, India Glycols is trading around ₹1305, with a daily high of ₹1,344.80, which is also its 52-week high. This indicates strong performance in the market.