Full Breakdown
India Moves to Permit Higher Ethanol Blends (E85, E100) in Vehicles
4/29/2026, 8:32:51 AM
Proposed Regulatory Amendments to Central Motor Vehicles Rules
On April 29, 2026 the Ministry of Road Transport and Highways issued a notification amending the Central Motor Vehicles Rules to permit fuels with up to 85 % ethanol (E85) and nearly pure ethanol (E100). The draft, open for public comment, creates a framework for vehicles designed for these blends, extending the current E20 mandate.
Context: From E20 Achievement to a New Ethanol Push
India met its 20 % ethanol-in-petrol (E20) target in 2025 under the Ethanol Blended Petrol programme. Officials view higher blends as vital to curb costly crude-oil imports and boost energy security.
Quantified Benefits and Economic Rationale
Government estimates the programme saves about 4.5 crore barrels of crude annually and cuts foreign-exchange outflows by roughly INR1.65 lakh crore. India currently imports fossil fuels worth INR22 lakh crore each year.
Vehicle Compatibility and Industry Concerns
A NITI Aayog roadmap says cars built for E10 could lose 1–2 % mileage on E20, affecting millions of models made between 2012 and March 2023. Vehicles from April 2025 will be E20-compliant, but automakers say higher blends need flex-fuel technology and tax incentives to offset efficiency loss.
Official Government Statements
The Ministry of Road Transport and Highways said the draft includes provisions for E85 (85 % ethanol) and E100 (nearly pure ethanol). Union Minister Nitin Gadkari warned there is no future for diesel and petrol vehicles and framed the policy as an import-substituting, cost-effective, pollution-free strategy. Petroleum Ministry joint secretary Sujata Sharma called it “an idea whose time has arrived.”
Industry Criticism and Calls for Incentives
The Society of Indian Automobile Manufacturers (SIAM) urged the government to introduce tax breaks on E10 and E20 fuels to mitigate the marginal drop in fuel efficiency. Several OEMs have highlighted the need for updated testing norms and consumer-choice dispensers before large-scale rollout of E85/E100.
Conflicting Perspectives and Information Gaps
Government data stress large foreign-exchange savings, whereas industry groups point to potential mileage penalties and the absence of fiscal relief. Final approval for E85/E100 vehicles remains pending, and no concrete timeline for tax incentives has been announced.
Verbatim Quotes
- “There is no future for diesel and petrol vehicles. If you (OEMs) are planning to expand only in that direction, then as a friend, I can say your future is not good,” — Nitin Gadkari, Union Minister of Road Transport and Highways
- “We import fossil fuels worth INR22 lakh crore. This is not only an economic challenge, but also a major pollution problem. Our policy is: import substitute, cost-effective, pollution-free, and indigenous,” — Nitin Gadkari
- “Highlighting the "huge potential" of ethanol as a fuel, Gadkari said that 20 per cent ethanol blending is already taking place, and the goverment is now working on flex engines.” — Nitin Gadkari
- “an idea whose time has arrived,” — Sujata Sharma, Petroleum Ministry Joint Secretary
Upcoming Steps and Timeline
The draft remains open for stakeholder feedback for 30 days, after which a final notification will be issued. Parallel consultations aim to finalize flex-fuel testing standards and explore separate dispensers for different ethanol blends.
