The Ministry of Petroleum and Natural Gas, Government of India, has announced its decision to blend 5% ethanol with petrol to be used as an oxygenate in vehicles. The Ministry has further announced to make the ethanol blend mandatory in nine states and four Union Territories starting from January 1, 2003. To meet the demand of ethanol by then, the Indian Renewable Energy Development Agency Limited (IREDA), as a financial institution, has decided to finance the sugar/alcohol industry to produce ethanol by offering loans. IREDA has requested WII to prepare a detailed report on the current policy, technology available, market potential, and financial aspects to fund ethanol production projects.

At the end of the project, WII delivered the following outputs specific to fuel ethanol:

1. Current policy environment
2. Technology status on ethanol production (national and international)
3. Market potential and demand
4. Supply, marketing and distribution
5. Comparative economics
6. Environmental implications
7. Financing issues including business opportunities for IREDA
8. Comparision of green fuel as existing and standalone in integrated projects

The report has been accepded by IREDA in toto.