Explanation:

The Central Government has recently approved the expansion of interest subvention scheme to raise ethanol manufacturing capacity to 1,000 crore litres by including grain-based distilleries in addition to just molasses-based units.

• The decision will facilitate capacity addition and greater ethanol blending will immensely help in import substitution, savings of foreign exchange and environment sustainability.

Ethanol Blending in India

• Ethanol blending is the practice of blending petrol with ethanol.
• In India, ethanol is mainly derived by sugarcane molasses, which is a by-product in the conversion of sugar cane juice to sugar.
• The practice of blending ethanol started in India in 2001 and ethanol blending first found mention in the Auto fuel policy of 2003.
• The Ethanol Blending Program (EBP) was started in 2003.
• The blending percentage of ethanol in petrol has gone up from 1.53% in 2013-14 to 5% in 2019-20 and estimated to be 8.5% in 2020-21.
• The Government has setup an ambitious target of 10% ethanol blending by 2022 and 20% ethanol blending by 2030.

Hence all statements are correct.