The Ministry of Road Transport and Highways has amended the Central Motor Vehicles Rules, 1989 to permit fuels with up to 100% ethanol (E100) in vehicles, opening the way for flex-fuel vehicles.

• E20: Petrol blended with 20% ethanol. India reached this target in 2025, five years ahead of the original 2030 deadline under the National Policy on Biofuels, 2018.
• E85: A blend with up to 85% ethanol.
• E100: Fuel with almost entirely ethanol.
• Flex-fuel vehicle: Runs on petrol, any ethanol blend or pure ethanol from a single fuel system. Brazil sells pure ethanol at its pumps.
• Ethanol: An alcohol made by fermenting plant material such as sugarcane, maize or broken rice.

• Energy security: Cuts crude oil imports and the import bill.
• Farm income: Creates demand for sugarcane, maize and surplus grain.
• Emissions: Ethanol can lower tailpipe emissions and support climate goals.
• Industry: Gives manufacturers clear rules to build flex-fuel vehicles.

• Compatibility: Owners of older vehicles worry about damage to components and higher maintenance, and about losing access to lower-ethanol petrol.
• Mileage: Ethanol has lower energy density than petrol. The government estimates about a 5% fall in mileage, while some consumers report more.
• Water absorption: Ethanol attracts water, which may raise contamination risks in the monsoon and needs separate storage and dispensing.
• Prices: Retail fuel prices have not fallen. The government says procurement of ethanol, about ₹71.86 a litre, costs more than the crude-based petrol cost of about ₹37 to ₹40 a litre.
• Electrification: Experts argue that electric vehicles offer deeper long-term emission cuts and avoid the lifecycle emissions of ethanol production.
• Land, water and food: Large-scale ethanol needs land and water, and feedstock choices can compete with food production.

• Infrastructure: Separate pumps, storage and supply chains for high blends.
• Feedstock supply: Reliable, affordable raw material without hurting food security.
• Consumer trust: Clear labelling and choice at the pump.
• Vehicle supply: Flex-fuel models are needed at affordable prices.