No Plan To Incentivise Vehicles Using Over 20 Per Cent Ethanol
OIL & GAS

No Plan To Incentivise Vehicles Using Over 20 Per Cent Ethanol

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.

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.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code