Biofuels are produced from renewable biological sources and have been considered as viable alternatives to fossil fuels. The National Policy on Biofuels has set a target of 20% blending of biofuels, both for bio-diesel and bioethanol by 2017. However, India achieved an average blending rate of close to 5% (ethanol blended with gasoline) for the first time only in 2016. This report discusses the various challenges and opportunities associated with ethanol blending in India. The report also summarises the best practices across the globe.