India has proposed amendments to its fuel rules to enable higher blending of ethanol in gasoline, but this would require changes in infrastructure and vehicle policy, according to market participants.
The Ministry of Road Transport and Highways issued a notification on 27 April to amend the Central Motor Vehicles Rules, 1989, to permit blends of up to 85pc ethanol in gasoline (E85) or E100 as well as biodiesel blends of up to 100pc in diesel (B100). The draft notification is open for public feedback until 27 May, after which the government will make final amendments.
The notification builds on simmering expectations of higher blending mandates as the country looks to slash reliance on costly fuel imports and progress on net-zero targets. India already achieved its 20pc ethanol blending target in 2025, ahead of its original 2030 timeline. Market participants have long called for the government to raise blend targets as they face ethanol production overcapacity and tight margins.
"The progression from E85 to E100 provides regulatory provisions for certifying vehicles capable of running on pure ethanol, signalling a clear shift towards mainstreaming indigenous biofuels," the Indian Sugar Mills Association's (Isma) director-general Deepak Ballani said.
An ambitious blending target would require infrastructural changes, particularly the adoption of flex-fuel vehicles (FFVs) which are compatible with higher ethanol-gasoline blends. India's ethanol lobby has been urging the government to promote FFVs even before the current Middle East conflict began.
The E85 strategy will require an immediate development of dedicated storage tanks and separate dispensing stations. Ethanol prices have to be reduced to account for mileage loss and dispensing stations for E85 need to be increased, according to Ravi Gupta, executive director at Indian ethanol producer Shree Renuka Sugars. Gupta also called for making FFVs lucrative for customers, for which incentives are required in the form of goods and services tax reduction.
Most vehicles on Indian roads are not compatible with higher ethanol blends, which can expose them to risks such as engine knocking and premature combustion and lead to significant engine damage.
Consumers should have a choice, as in Brazil, before a higher blended fuel mandate is introduced, said managing director and founder of bioenergy consulting firm Reveille Energy, Rohit Dev. Older vehicles should continue to operate under current norms, while future vehicles must be fully flex-fuel enabled, he said.
FFVs currently dominate Brazil's automobile market. Government measures, including higher blending targets, tax incentives, and mandates for automakers to manufacture FFVs have supported their adoption.
