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Distillers, sugar millers and traders have welcome the government’s move to allow vehicles to run on stand alone ethanol or in any mixure ratio with petrol, which may pave the way for introduction of flex fuel vehicles in India.

According to Ravi Gupta, Chairman (Sugar Bioenergy Group ) of Indian Federation of Green Energy (IFGE), moving to 100 per cent ethanol will allow auto makers to introduce flex fuel vehicles (FFVs). The government now also needs to ensure that such vehicles should be lucrative for consumers to buy, he said.

Further, suggesting infrastructure should be created at petrol pumps, Gupta said that in the first phase the E100 should be rolled out in sugar-surplus Uttar Pradesh, Maharashtra, Karnataka and grain-surplus states like Bihar and Chhattisgarh.

Deepak Ballani, Director General, Indian Sugar and Bio-energy Manufacturers Association (ISMA) said that the draft Gazette notification on Central Motor Vehicles (Amendment) Rules, 2026, issued by the Ministry of Road Transport and Highways (MoRTH), is a timely and forward-looking step towards strengthening India’s clean mobility framework.

“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. Aligned with the vision of Atmanirbhar Bharat, it strengthens energy security while leveraging India’s existing ethanol ecosystem,” said Ballani.

Grain Ethanol Manufacturers Association (GEMA) President C K Jain said: “This draft notification marks a progressive and forward-looking step for India’s biofuel ecosystem. The formal inclusion of E85 and E100 in emission norms is a strong policy signal that the country is ready to move beyond E20 and embrace higher ethanol blends in a structured and regulated manner.”

Jain further added that for the grain-based ethanol industry, it opens up significant opportunities to scale production, drive investments, and contribute more meaningfully to India’s energy security and decarbonisation goals. It also reinforces confidence among stakeholders across the value chain, from farmers to fuel producers and automobile manufacturers.

“We welcome the government’s intent to align regulatory frameworks with evolving fuel technologies, including higher ethanol and biodiesel blends. As India continues its journey toward reducing crude oil imports, such enabling policies will play a critical role in accelerating the transition to cleaner, domestically produced fuels,” Jain said.

He also hoped that higher ethanol blends such as E85 and E100 would significantly enhance demand for surplus grains, strengthening farm incomes and creating a more resilient agri-value chain.

The All India Distillers’ Association (AIDA), called it a decisive move to propose an amendment in the Central Motor Vehicles Rules (CMVR), 1989.

“The draft notification formally introduces E100 (Pure Ethanol), E85, and Hydrogen-CNG into India’s regulatory framework. It is the most significant policy shift since the start of the Ethanol Blending Programme, effectively transitioning ethanol from a simple petrol additive to a stand alone primary fuel,” it said.

The notification provides the legal ‘Identity card’ for E100 by creating a dedicated compliance annexure as this will remove the regulatory uncertainty that previously prevented automobile manufacturers from launching vehicles that run entirely on ethanol, AIDA said.

Vijendra Singh, President, AIDA, said, “For years, ethanol was seen only as a blending agent. By legally recognising E100 as a primary fuel, the government has provided the distillery industry with the long-term certainty needed to scale up production. We are now ready to power India’s transport sector independently of foreign oil.”

Praful Vithalani, Chairman of All India Sugar Trade Association called it a remarkable achievement on the E20 target 5 years early in 2025, which boosted India’s ethanol economy. The sugar and ethanol industry is fully prepared to support the next phase -- E85 and E100 -- road map. “India already has excess 10 billion litre capacity unutilised as on date. The need of the hour is to create necessary infrastructure by public sector oil companies by establishing supply stations. Besides, there is a need for a 15-year policy with subsidy guidelines for flex fuels vehicles,” Vithalani said.

Published on April 30, 2026