The Central Government has proposed a major policy shift expanding the use of ethanol-based fuels in vehicles and allowing blends up to E85 and even E100 (100% ethanol). The move comes through a draft amendment to the Central Motor Vehicles Rules, 1989, released by the Ministry of Road Transport and Highways (MoRTH) for public consultation.
The objective of the policy twist is to promote cleaner mobility and reduce crude oil imports.
If approved, the revised rules will permit vehicles to run entirely on ethanol, similar to systems already in place in countries like Brazil, where motorists can choose between petrol and ethanol at fuel stations. The proposal is expected to push automobile manufacturers to develop more flex-fuel vehicles capable of operating on a wide range of ethanol-petrol blends, including pure ethanol.
A key highlight of the draft is the expansion of the ethanol fuel category. While existing rules recognised only E85 (85% ethanol), the new proposal includes E100, significantly widening fuel options. This will require vehicle makers to redesign engines compatible with higher ethanol concentrations, going beyond the current E10 and E20-compatible vehicles widely used in India.
The draft also clarifies fuel definitions by formally recognising E20 (20% ethanol blend) under the petrol category, replacing earlier ambiguous terminology. For consumers, there will be no immediate impact, as most existing vehicles are designed for lower blends. However, over time, the policy is expected to increase the availability of cleaner fuel choices at petrol pumps.
In another important change, the government has proposed raising the weight limit for light vehicles from 3,000 kg to 3,500 kg. This aims to encourage the adoption of flex-fuel technologies without pushing such vehicles into heavier regulatory categories due to marginal weight increases.
The push for ethanol aligns with India’s broader energy and environmental goals. With nearly 88% of crude oil requirements met through imports, higher ethanol usage could significantly cut foreign exchange expenditure. Additionally, ethanol production—primarily from crops like sugarcane and maize—offers income support to farmers.
India has already made notable progress in ethanol blending, achieving 10% ahead of schedule in 2022 and reaching nearly 20% by mid-2025. The government now sees higher ethanol blends as a key step toward reducing emissions and advancing its climate commitments.
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