Govt Considering Policy To Support Affordable Adoption of E85 Fuel: Puri

New Delhi: The government is examining a policy to support accelerated affordable adoption of E85 fuel (85 per cent ethanol blended petrol) Petroleum and Natural Gas minister Hardeep Singh Puri said on Wednesday.

Addressing an event organised by Hero MotorCorp, Puri further said unveiling of India's first flex fuel motorcycles fully compatible with ethanol-blended fuels ranging from E20 (20 per cent ethanol blended petrol) to E85 (85 per cent ethanol by Hero MotorCorp is a new chapter in India's energy history).

He said E85 fuel will be substantially cheaper than normal fuel.

"We are actively examining a supportive policy for accelerated affordable adoption of E85 fuel," Puri said.

India is the largest manufacturers of two-wheeler vehicles in the world.

The minister said even if 1 per cent of E85 is adopted in the 2026-27 supply year, 4 crore litre ethanol demand will be generated.

"Then our farmers who are now aanadata, will become urjadaata," he said.

The Ministry of Road Transport and Highways has proposed amendments to vehicle emission rules to widen the scope for higher ethanol blends and alternative fuels, paving the way for flex-fuel and pure biofuel vehicles across vehicle categories.

The draft changes to the Central Motor Vehicles Rules, 1989 aim to provide for wider use of fuels, such as E85 (a blend of 85 per cent ethanol with petrol) and E100 (which would allow vehicles to run on nearly pure ethanol), as well as B100 biodiesel and hydrogen-CNG combinations.

India has already achieved 20 per cent blending of ethanol (produced from biomass like sugarcane, corn or rice) with petrol to create a cleaner-burning fuel, reducing reliance on imported crude oil and cutting carbon emissions.

Also, speaking at the event, Union road transport and highways minister Nitin Gadkari said he has raised the issue of higher GST (18 per cent) on fuel having ethanol blending of more than 20 per cent in petrol.

"The finance minister assured me that she will discuss this issue of higher taxes on E30 and above with state governments in the GST Council meeting," Gadkari said.

GST on E20 fuel is 5 per cent.

Diversification of agriculture towards energy and power is the future, Gadkari said, adding that ethanol is a better fuel and not inferior.

The road transport and highways minister said his ministry is exploring the option of building concrete roads.