No Plan To Incentivise Vehicles Using Over 20 Per Cent Ethanol

07 Aug 2026 CW Team

The Centre defended the E20 blend on the basis of extensive laboratory testing and large?scale field experience, reporting no evidence that 20 per cent ethanol petrol causes abnormal engine wear, corrosion or reduced vehicle life. Officials described the programme as a contributor to national energy security and as a mechanism that cushions consumers from global oil price volatility. The ministry said technical readiness and fuel quality standards have been prioritised in rollout plans.

Under the National Policy on Biofuels the ministry noted that ethanol is produced from multiple approved feedstocks including sugarcane-based feedstocks, maize, damaged foodgrains, broken rice and surplus foodgrains approved by the National Biofuel Coordination Committee (NBCC) along with other approved agricultural feedstocks. It highlighted that an Expert Committee constituted by the Ministry of Agriculture and Farmers Welfare in 2024 examined the water requirement of various ethanol feedstock crops and that its recommendations are being considered while implementing the blending programme.

The MHI said the government has adopted a balanced approach to the EBP programme, with water sustainability, food security and farmers' interests treated as priorities in policy design. The ministry reiterated that no separate phased national incentive scheme for vehicles using more than 20 per cent ethanol is in place and that any change to blending targets would follow further technical and environmental assessment. Stakeholders and manufacturers have been engaged through testing and field trials as part of preparatory work. The ministry indicated that implementation will focus on fuel quality oversight and incremental rollout aligned with infrastructure readiness.

The Ministry of Heavy Industries (MHI) said it has not formulated any separate phased national policy to incentivise flex?fuel vehicles operating on fuel blended with more than 20 per cent ethanol and that it has not carried out any study on incentivisation of flex?fuel or electric vehicles. The statement reiterated that current measures focus on the Ethanol Blended Petrol (EBP) programme and on testing and field trials rather than on direct purchase or tax incentives. The Centre defended the E20 blend on the basis of extensive laboratory testing and large?scale field experience, reporting no evidence that 20 per cent ethanol petrol causes abnormal engine wear, corrosion or reduced vehicle life. Officials described the programme as a contributor to national energy security and as a mechanism that cushions consumers from global oil price volatility. The ministry said technical readiness and fuel quality standards have been prioritised in rollout plans. Under the National Policy on Biofuels the ministry noted that ethanol is produced from multiple approved feedstocks including sugarcane-based feedstocks, maize, damaged foodgrains, broken rice and surplus foodgrains approved by the National Biofuel Coordination Committee (NBCC) along with other approved agricultural feedstocks. It highlighted that an Expert Committee constituted by the Ministry of Agriculture and Farmers Welfare in 2024 examined the water requirement of various ethanol feedstock crops and that its recommendations are being considered while implementing the blending programme. The MHI said the government has adopted a balanced approach to the EBP programme, with water sustainability, food security and farmers' interests treated as priorities in policy design. The ministry reiterated that no separate phased national incentive scheme for vehicles using more than 20 per cent ethanol is in place and that any change to blending targets would follow further technical and environmental assessment. Stakeholders and manufacturers have been engaged through testing and field trials as part of preparatory work. The ministry indicated that implementation will focus on fuel quality oversight and incremental rollout aligned with infrastructure readiness.

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