The government has given in principle approval to 61 projects of ethanol production to achieve the target of 20 per cent ethanol blending with petrol by 2025.
Department of Food and Public Distribution has said that these projects will add 257 crore litres to ethanol production capacity of the country.
All of these projects already have land and environmental clearances, official sources said.
An investment of around Rs 7,000 crore is expected from these projects.
Out of 257 crore litres, 186 crore litres capacity is expected from grain-based distilleries, they added.
A NITI Aayog expert committee on ethanol blending in its report last year had said that by achieving 20 per cent blending with petrol, Rs 30,000 crore of foreign exchange can be saved annually.
Also it will improve air quality, lower carbon emissions and increase farmers’ income, the report had said.