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[BUSINESS] · India · 2 sources

India approves 100% ethanol (E100) fuel, paving way for flex‑fuel cars

India's Ministry of Road Transport and Highways, led by Minister Nitin Gadkari, has granted legal approval for the use of E100 fuel – a blend containing almost pure ethanol – as a substitute for conventional petrol. The decision is intended to reduce the country's dependence on imported crude oil and to create a new market for ethanol produced from crops such as sugarcane, maize and rice.

Automakers including Toyota, Suzuki (Maruti), Hyundai and MG Motors have been told that they can launch flex‑fuel vehicles (FFVs) designed to run on E100 within the next one‑to‑two months. A flex‑fuel version of Maruti's VanGaR was recently displayed, and similar models are expected to reach fleet operators before private buyers. The government estimates that the ethanol program has already saved more than ₹1 lakh crore in oil import costs and generated roughly ₹80 000 crore extra income for farmers.

Implementation will require new dispensing infrastructure, as ethanol has lower energy density and different storage needs compared to petrol. Authorities plan to develop E100 dispensing stations in major cities and agricultural hubs, while manufacturers expand their FFV line‑ups.