Ethanol Blending Programme (India)
India's Ethanol Blending Programme aims to integrate ethanol into petrol to achieve energy security, reduce import dependence, and support farmers, with E20 ...
The article discusses the Indian government's defense of its ethanol blending program (EBP) amidst public concerns regarding engine corrosion and reduced mileage. The Petroleum Ministry clarified that extensive field trials by bodies like ARAI, IIP, SIAM, and Indian Oil in 2014 found no significant negative effects with 20% ethanol blend (E20), which was formally launched in Feb 2023 and achieved 19.99% blending by Dec 2025. The Ministry highlighted ethanol's high octane number and superior anti-knock characteristics, citing international best practices (e.g., Brazil's 27% blending). It also emphasized the program's economic benefits, including substituting crude oil, expediting farmer payments, and saving foreign exchange. Political figures like Arvind Kejriwal and Tehseen Poonawalla have raised concerns and called for a review of the mandatory blending policy.
Durable syllabus ideas for revision — not article memory.
India's Ethanol Blending Programme aims to integrate ethanol into petrol to achieve energy security, reduce import dependence, and support farmers, with E20 ...
Previous year Prelims questions on overlapping themes and topics.
Consider the following statements
1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
2. The Government does not impose any customs duty on all the imported edible oils as a special case.
Which of the two statements given above is/are correct
Statement 1 is correct. Domestic production of edible oil in 2018 was around 100 Lakh Metric tons (LMT) while import was around 150 LMT. Statement 2 is incorrect. The Government of India does impose customs duties on imported edible oils. The rates of these duties may vary depending on various factors, including the type of edible oil, international market conditions, and government policies aimed at promoting domestic production or protecting domestic producers.
Which of the following are the sources of income for the Reserve Bank of India?
I. Buying and selling Government bonds
II. Buying and selling foreign currency
III. Pension fund management
IV. Lending to private companies
V. Printing and distributing currency notes
Select the correct answer using the code given below.
The Reserve Bank of India earns income through financial operations such as managing government securities, foreign exchange, and issuing currency. It does not operate like a commercial bank or a pension fund manager. ✅ Statement I: Correct Buying and selling Government bonds through Open Market Operations earns the RBI interest and trading profits. ✅ Statement II: Correct Forex operations and investment of foreign exchange reserves generate income for the RBI. ❌ Statement III: Incorrect RBI does not manage pension funds; that is done by entities like PFRDA. ❌ Statement IV: Incorrect RBI does not lend directly to private companies; it lends to banks, which in turn lend to companies. ✅ Statement V: Correct Printing and distributing currency notes yields income through seigniorage—the profit from face value minus production cost.
Consider the following statements:
1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries.
2. In terms of PPP dollars, India is the sixth largest economy in the world.
Which of the statements given above is/are correct?
Statement 1 is correct: Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries. Statement 2 is incorrect: India is not the sixth-largest economy in the world in terms of PPP dollars. It is currently the third largest economy in terms of PPP dollars, after China and the United States.
With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of :
* Collateral Borrowing and Lending Obligations (CBLO) are instruments of the: C. Money market * CBLO is a money market instrument that facilitates borrowing and lending operations on a collateralized basis. It is used by banks, financial institutions, and other entities to manage their short-term liquidity requirements.
Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD):
I. It provides loans and guarantees to middle income countries.
II. It works single-handedly to help developing countries to reduce poverty.
III. It was established to help Europe rebuild after the World War II.
Which of the statements given above are correct?
The International Bank for Reconstruction and Development (IBRD) is a key arm of the World Bank Group, originally created for post-war reconstruction and now focused on development in middle-income nations. ✅ Statement I: Correct The IBRD provides loans and guarantees to middle-income and creditworthy low-income countries. ❌ Statement II: Incorrect The IBRD does not work single-handedly; it collaborates with other arms of the World Bank Group like IDA, IFC, etc. ✅ Statement III: Correct It was established in 1944 to help Europe rebuild after World War II.
In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis?
1. The foreign currency earnings of India’s IT sector
2. Increasing the government expenditure
3. Remittances from Indians abroad
Select the correct answer using the code given below.
Statement 1 is correct: Foreign currency earnings - The IT sector generates foreign exchange through exports of services. This increases the supply of foreign currency reserves, making it easier to defend the rupee's value in the foreign exchange market during times of stress. Statement 2 is incorrect: While government spending can stimulate economic growth, it can also lead to a higher budget deficit. If the deficit is financed by excessive borrowing, it can put pressure on the currency if investors lose confidence in the government's ability to repay its debts. Statement 3 is correct: Remittances from abroad - When Indians working abroad send money back home, it adds to the inflow of foreign currency. This strengthens the country's foreign exchange reserves and provides a buffer against external shocks. Therefore, the correct code is 1 and 3 only.
Consider the following statements :
Statement-I : India accounts for 3.2% of global export of goods.
Statement-II :Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme.
Which one of the following is correct in respect of the above statements?
* Statement I is incorrect: India's share in global merchandise trade is only 1.8% and 4% in global services. India plans to increase its export share in global trade from 2.1% to 3% by 2027 and 10% by 2047. * Statement II is correct: The PLI scheme is open to both domestic and international manufacturers. Samsung as well as Indian firms such as Dixon Technologies, UTL, Neolyncs, Lava International, Optiemus Electronics and Micromax are also expanding their factories to take advantage of the PLI scheme.
With reference to coal-based thermal power plants in India, consider the following statements :
1. None of them uses seawater.
2. None of them is set up in water-stressed district.
3. None of them is privately owned.
How many of the above statements are correct?
* Statement 1 is incorrect: The Mundra Thermal Power Plant employs a closed-cycle induced draft circulating cooling water system that utilises seawater. Seawater is drawn from the Gulf of Kutch through robust glass reinforced pipes of significant diameter. In addition, purified seawater from a reverse osmosis plant is utilised by various supplementary systems. * Statement 2 is incorrect: According to recent research by WRI (World Resources Institute), 40 percent of India's thermal power plants are situated in regions experiencing significant water stress. This poses a challenge as these plants rely on water for cooling purposes. The scarcity of water is already causing disruptions in electricity generation in these areas, with 14 out of India's 20 largest thermal utilities having experienced at least one shutdown between 2013 and 2016 due to water shortages. * Statement 3 is incorrect: India has a total of 269 Thermal Power Plants, with 138 of them being owned by the public sector and the remaining 131 owned by the private sector.
Consider the following infrastructure sectors:
1. Affordable housing
2. Mass rapid transport
3. Health care
4. Renewable energy
On how many of the above does UNOPS Sustainable Investments in Infrastructure and Innovation (S3i) initiative focus for its investments?
* In March 2020, Sustainable Investments in Infrastructure and Innovation (S3i) was formally established as a stand-alone business unit in the UNOPS governance structure, making UNOPS the first United Nations organisation able to make direct investments from its own balance sheet. * In line with the UNOPS Strategic Plan, 2022-2025, the S3i office will seek to enhance and accelerate the effort of engaging public and private sector investors to work collectively to scale up infrastructure investments and consider co-creating innovative financing options. The UNOPS S3i will continue rolling out the initiative across its three focus-areas- affordable housing- renewable energy- health infrastructure _SK Tip_: _Just think of the option - Rapid Mass Transport. If we generally think, rapid mass transport is not a need or even a necessity while considering sustainable aspects. Had it been mass transport, we would have still given it a thought. But not rapid mass transport._
With reference to the Indian economy, consider the following statements:
1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.
Which of the statements given below is/are correct?
Statement 1 is incorrect. Typically, the RBI uses open market operations to sell government securities to drain money from the system and control inflation. Buying government securities would inject money into the system, potentially fueling inflation further. Statement 2 is correct. Selling dollars in the market - If the rupee is rapidly depreciating, the RBI might intervene in the foreign exchange market by selling dollars from its reserves. This increased supply of dollars in the market can help stabilize the exchange rate and slow down the depreciation of the rupee. Statement 3 is correct. Lower interest rates in the US/EU make India a more attractive destination for foreign investment, leading to a large inflow of dollars. This causes the rupee to strengthen (appreciate). To prevent the rupee from appreciating too rapidly and hurting exporters, the RBI buys the excess dollars from the market.
Previous year Mains questions mapped to overlapping GS syllabus topics.
Does tribal development in India centre around two axes, those of displacement and of rehabilitation? Give your opinion.
Achieving sustainable growth with emphasis on environmental protection could come into conflict with poor people’s needs in a country like India – Comment.
How do you account for the growing fast food industries given that there are increased health concerns in modern society? Illustrate your answer with the Indian experience.
Discuss the evolution of collegium system in India. Critically examine the advantages and disadvantages of the system of appointment of the Judges of the Supreme Court of India and that of the USA.
Indian Constitution has conferred the amending power on the ordinary legislative institutions with a few procedural hurdles. In view of this statement, examine the procedural and substantive limitations on the amending power of the Parliament to change the Constitution.
Mahatma Jotirao Phule’s writings and efforts of social reforms touched issues of almost all subaltern classes. Discuss.
MCQs drawn from today's published current affairs.
Statement 1 and 2 are directly mentioned in the article: 'Petrol containing 20% ethanol blend was formally launched in February 2023' and 'Ethanol blending of 19.99% was achieved in December 2025.' The article does not mention any target for 100% ethanol blending by 2030.
The article explicitly states that 'Automotive Research Institute of India (ARAI) along with the Indian Institute of Petroleum (Dehradun), the Society of Automobile Manufacturers (SIAM), and Indian Oil had undertaken studies' for ethanol blending. ONGC is not mentioned in this context.
The article mentions that the blending program 'had helped substitute 310 lakh metric tonnes of crude oil, expedited payment of more than ₹1.6 lakh crore to farmers and helped save more than ₹1.9 lakh crore in foreign exchange,' making statements 1, 2, and 3 correct. Statement 4 is incorrect as the article specifies 'Higher ethanol blended petrol between 22-30% exempted from central excise duty,' not all blended fuels.
Introduce the Ethanol Blending Program (EBP) and the context of ongoing concerns. Detail the government's defense, including field trials, ethanol's technical properties, and alignment with international practices. Elaborate on the economic benefits such as crude oil substitution, farmer payments, and foreign exchange savings. Finally, present the public and political apprehensions regarding engine corrosion, mileage drop, and mandatory implementation. Conclude with a balanced perspective on the policy's challenges and potential.
Begin by explaining the strategic importance of the Ethanol Blending Program (EBP) for India's energy security. Compare India's blending targets and practices with international examples like Brazil, Japan, Canada, and the U.S., highlighting the consistency. Detail the technical considerations supporting higher ethanol blends, such as ethanol's high octane number, superior anti-knock characteristics, higher power potential, and cooling effect, as validated by extensive field trials. Conclude on the overall strategic and technical rationale behind the program.