The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) has welcomed the government’s decision to recognise E100 fuel alongside E85 under the emission-certification framework for flex-fuel vehicles, saying the move could expand domestic ethanol demand, strengthen energy security and improve farmer incomes.
The Ministry of Road Transport and Highways (MoRTH) notified the Central Motor Vehicles (Amendment) Rules, 2026, through G.S.R. 911(E) dated October 23. The amendment to the Central Motor Vehicles Rules, 1989, requires vehicles designed to operate on E85 and E100 to comply with the applicable emission standards, testing requirements and vehicle-safety norms for their respective categories.
ISMA said the regulatory change provides a foundation for developing, testing and certifying vehicles capable of running on higher ethanol blends. It is also expected to strengthen cooperation between India’s biofuel and automotive industries.
Deepak Ballani, Director General, ISMA, said: “India’s regulatory framework is steadily evolving to enable ethanol-based mobility. The recognition of E100 alongside E85 under the CMVR framework is a significant step towards accelerating the adoption of flex-fuel vehicles. Such progressive and enabling policy measures will be instrumental in unlocking domestic ethanol demand, strengthening energy security and advancing India’s journey towards Atmanirbhar Bharat.”
Higher ethanol use could boost farmer incomes
According to MoRTH’s definition, a flex-fuel vehicle is designed to run on fuel blends ranging from E20 to E85/E100. These vehicles use a single fuel system with ethanol-compatible modifications to components such as the engine control module, fuel pump, fuel heater, injection system, fuel lines and seals.
Wider adoption of ethanol-based mobility could reduce India’s dependence on imported crude oil, conserve foreign exchange and lower lifecycle greenhouse gas emissions. As a renewable fuel produced from biomass, ethanol releases carbon dioxide during combustion that is biogenic in origin, having been absorbed during biomass growth.
Higher ethanol blends may also offer air-quality benefits. E100 can reduce particle number emissions by 84% compared with E20. Ethanol’s higher oxygen content promotes more complete combustion, while flex-fuel vehicles running on ethanol blends can reduce certain tailpipe pollutants, including carbon monoxide and hydrocarbons.
ISMA estimates that if E100-compatible flex-fuel vehicles account for 50% of new car sales from 2027 onwards, with annual new-car sales growing at a compound annual growth rate of 5%, ethanol consumption could reach approximately 1,471 crore litres by 2030. Under this scenario, foreign exchange savings could amount to Rs 71,448.8 crore, while farmer income could reach Rs 58,489.9 crore.
The transition could also encourage investment and employment across the value chain, including ethanol production, ethanol-compatible automotive components, fuel storage and distribution infrastructure, manufacturing and related services.
ISMA said wider availability of E85/E100-compatible vehicles, accessible fuel infrastructure and a supportive, predictable policy framework would be essential to accelerate adoption and strengthen the link between farmers, ethanol producers, fuel retailers and automobile manufacturers.