Critically evaluate mandatory blending as a tool for energy transition in India.

Mandatory blending — a binding obligation on fuel marketers to mix a fixed share of bio-based fuel into conventional fuel — has become India's default energy-transition instrument, spanning ethanol in petrol, the Compressed Bio-Gas Blending Obligation (CBO) and indicative sustainable aviation fuel (SAF) targets. Its record shows strong demand creation but uneven supply response.

Where the tool has worked

• Assured demand accelerates adoption: India achieved the 20% ethanol blending (E20) target in 2025, five years ahead of the National Policy on Biofuels' 2030 timeline [1].
• Crowds in investment: the CBO in CNG (Transport) and PNG (Domestic) segments of City Gas Distribution is expected to attract about ₹37,500 crore and 750 CBG projects by 2028-29 [2].
• Serves multiple goals at once — LNG import substitution, forex savings, circular economy and net-zero [2].
• Extends transition to hard-to-abate sectors: SAF blending targets of 1% (2027), 2% (2028) and 5% (2030) for international flights [3], backed by bringing SAF-blended fuel under the ATF Control Order [4].

Where it falls short

• A mandate binds the buyer, not the producer. Under SATAT, against a target of 5,000 CBG plants and 15 MMT by 2023-24, the Standing Committee on Petroleum & Natural Gas found only 40 plants operational, and 3,263 letters of intent against just 35 commissioned [5].
• Viability gaps persist: Central Financial Assistance was discontinued in April 2021, returns are low, and a uniform procurement price ignores differing feedstock costs [5].
• Infrastructure and clearance bottlenecks: plants remain unsynchronised with the National Gas Grid, and fragmented multi-agency approvals delay projects [5].
• Feedstock risk: seasonal crop residue forces costly year-round storage; municipal waste and press mud are under-used [5].

Blending mandates succeed where a supply chain already exists — distilleries for ethanol — and stall where it must be built from scratch. Their effectiveness therefore depends on complementary supply-side reform: feedstock-linked pricing, generation-based incentives, single-window clearance, gas-grid connectivity and carbon-credit monetisation [5]. Paired with these, mandates can credibly anchor India's energy security and net-zero commitments.