Nitin Gadkari approves regulations for ‘100% ethanol’ use in vehicles in India

The Union government has approved a comprehensive regulatory framework for the use of 100 per cent ethanol (E100) as a transportation fuel. This would lead to the introduction of ethanol-only vehicles in India.

The Union Minister Nitin Gadkari has announced that he had signed off on the E100 fuel regulations, providing a formal legal structure for automakers, fuel retailers and testing agencies to begin rolling out vehicles powered entirely by ethanol.

“I signed the file at 8 pm today,” Gadkari said while addressing the Sugar, Ethanol & Bio-Energy India Conference in Nagpur. He held that the move would help reduce India’s dependence on imported fossil fuels while boosting the use of domestically produced biofuels.

The decision represents a significant leap beyond India’s existing ethanol-blending programme, which is centred on the nationwide adoption of E20 fuel. By enabling E100, the government has created a pathway for vehicles designed to run solely on ethanol, expanding the country’s alternative fuel ecosystem alongside electric, CNG, hybrid and hydrogen-powered mobility solutions.

Gadkari said that flex-fuel vehicles are already entering the market. He pointed to the launch of Maruti Suzuki’s WagonR flex-fuel model and ethanol-powered motorcycles by Hero. The minister also added that Toyota and Hyundai are also expected to introduce vehicles capable of running on 100 per cent ethanol.

The regulatory clearance is expected to boost investments in flex-fuel engines, ethanol-compatible fuel systems and dedicated vehicle platforms. Gadkari described the sugar and bio-energy sector as a key driver of rural development. Increased ethanol production, he said, could boost demand for crops such as sugarcane and maize, while spurring investment in bio-refineries and rural infrastructure.

The Karnataka State Sugarcane Growers’ Association has welcomed the move, noting that it fulfils a long-standing demand raised by farmers nearly two decades ago. Delegates at the South India Farmers’ Convention in Mysuru in 2006 had passed a resolution urging the Centre to promote ethanol production from sugarcane and allow its use as a transportation fuel.

Industry Welcomes Tax Relief on Higher Ethanol Blends

The industry has also responded positively to the Centre’s decision to exempt petrol blended with 22–30 per cent ethanol from excise duty and other levies. The All India Distillers Association (AIDA) described the notification extending tax exemptions to E22, E25, E27 and E30 petrol blends as a major policy breakthrough.

According to AIDA, the move removes a key fiscal barrier to higher ethanol adoption and signals the government’s intent to move beyond the E20 blending programme toward a more ethanol-driven fuel economy.