In September 2025, the Japan Bank for International Cooperation (JBIC) signed a loan agreement worth Rs 3,500 crore with Power Finance Corporation (PFC) Limited to fund a biofuel production and power plant project in Assam. This project supports which biofuel blending target set by India’s National Policy on Biofuels?

The correct answer is 20% ethanol blending (E20). In News JBIC provided a loan of Rs 3,500 crore to PFC for a biofuel and power project supporting India’s biofuel blending targets. Key Points The loan funds Assam Bio Ethanol Private Limited’s biofuel production and power plant in Golaghat district. Supports the National Policy on Biofuels, which targets 20% ethanol blending in gasoline (E20) by 2025. India is the world’s third-largest emitter of CO2, making biofuel adoption strategic for emission reduction. The project contributes to cleaner energy transition and reduces fossil fuel dependence. JBIC focuses on financing sustainable infrastructure projects in developing economies. Power Finance Corporation is a central public sector undertaking financing power sector projects in India. Ethanol blending improves fuel efficiency and lowers vehicular emissions. Additional Information E20 means gasoline blended with 20% ethanol. The National Policy on Biofuels was introduced to encourage renewable energy use in transport. CO2 emission reduction is critical to combat climate change and improve air quality. BJIC is a Japanese government financial institution supporting economic cooperation globally. Biofuel projects boost rural economy and sustainable agriculture. Power Finance Corporation Established in - 1986 HQ - New Delhi