India has saved more than ₹1.40 lakh crore in foreign exchange through the use of ethanol-blended petrol, Union Road Transport and Highways Minister Nitin Gadkari informed the Lok Sabha on Thursday. He said the initiative has also generated significant benefits for farmers supplying feedstock for ethanol production.
Gadkari said that extensive testing carried out by the government has shown no adverse impact on vehicles using ethanol-blended fuel, addressing concerns raised by MPs regarding engine safety and material compatibility. He added that the rollout of E20 petrol marks a key shift towards cleaner fuels and reduced dependence on imported crude oil.
According to the minister, farmers have received around ₹40,000 crore for providing raw materials such as sugarcane and maize required for ethanol production under the Ethanol Blended Petrol (EBP) Programme.
Responding to queries on fuel compatibility, Gadkari said that vehicle manufacturers must clearly declare whether a particular model is E20-compliant, and this information is required to be displayed on each vehicle through a visible sticker. Vehicles sold prior to April 1, 2023, he said, are compatible with E10 fuel, while those manufactured after this date comply with E20 standards.
He said that the Bureau of Indian Standards and Automotive Industry Standards have already laid down safety norms for E20 fuel. Tests evaluating drivability, startability and the compatibility of metal and plastic components have shown no issues with the use of ethanol-blended petrol.
Gadkari further clarified that older vehicles that do not meet E20 standards do not require any modification or phase-out measures. Citing a study conducted by the Automotive Research Association of India (ARAI), Indian Oil Corporation Ltd (IOCL) and the Society of Indian Automobile Manufacturers (SIAM), he said that normal wear and tear associated with ethanol use can be addressed through regular servicing, with no special retrofitting needed.
The minister also highlighted the environmental benefits of the EBP Programme, stating that it has resulted in the reduction of approximately 790 lakh metric tonnes of net CO₂ emissions and substituted more than 260 lakh metric tonnes of crude oil.
