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Informist, Tuesday, Oct. 14, 2025

 

MUMBAI – The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has urged the government to provide a roadmap to guide the transition from ethanol blending with petrol from 20% (E-20) to higher levels such as E25, E27, and E30. The association issued a joint appeal with the Indian Federation of Green Energy for the ethanol mobility roadmap, outlining a clear trajectory for ethanol blending beyond E20.

This strategic push comes in the wake of India's success in achieving the 20% ethanol blending with petrol five years ahead of schedule. This cross-sector collaboration among the government and the sugar, bioenergy and automotive sectors has placed India as the leading global example of sustainable fuel transition, the association said.

 

The sugar industry has invested around INR 400 billion to create an ethanol production capacity exceeding 9 billion litres per annum, making it well-equipped to support blending levels beyond E-20. These investments have boosted farmer incomes by ensuring steady demand for sugarcane, enabling quicker clearance of sugarcane arrears, improving mill cash flows, generating rural jobs, and promoting research in high-yield feedstocks for sustainable ethanol production, it said.

 

"With the ethanol industry offering 1,776 crore litres (17.76 billion litres) against the oil marketing companies' requirement of 1,050 crore litres (10.50 billion litres), the sector is fully prepared to support ethanol blending at 27%, demonstrating its readiness to meet higher national blending targets. Without a defined roadmap beyond E-20 blending, production capacities could remain underutilised, leading to idle investments, reduced mill revenues, and a slowdown in future biofuel innovation," Director General of ISMA, Deepak Balani said.

 

A phased, time-bound roadmap is critical in providing clarity on blending milestones, vehicle adaptation standards, and ethanol diversification into advanced biofuels such as second-generation and third-generation ethanol, sustainable aviation fuel, and green chemicals, Balani said.

 

Additionally, the absence of an increase in the procurement price of ethanol from B-heavy molasses and juice over the last three years has created financial pressure, which may slow growth and threaten to erode these gains, ISMA said. A clear roadmap beyond E-20 is essential to maintain momentum, ensure fair utilisation of installed capacity, and continue to uplift farmer incomes, the association said.

 

The consortium also sought goods and services tax rationalisation on flexible-fuel vehicles and smart hybrid vehicles, along with consumer incentives similar to those offered under the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles scheme, to sustain the momentum of India's ethanol revolution.

 

The joint appeal also highlights the role of flexible-fuel vehicles and smart hybrids in bridging India's transition from traditional internal combustion engines to cleaner mobility solutions. These vehicles, which can operate efficiently on different blends up to E-100, have the potential to considerably reduce vehicular emissions and petroleum dependence, the release said.

However, the current GST rate of 43% levied on flexible-fuel vehicles and smart hybrids remains a major disincentive compared to EVs, which enjoy a much lower GST rate of 5%. With the increase in use of these vehicles, India can reduce its annual oil import bill by INR 500 billion-INR 750 billion, enhance energy independence under the Atmanirbhar Bharat vision, and stay firmly on course to meet its net zero 2070 commitment, the release said.  End

 

Reported by Taniva Singha Roy

Edited by Saji George Titus

 

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