New Delhi, Aug 10: Amid growing debate around India’s Ethanol Blending Programme (EBP), the Indian Federation of Green Energy (IFGE) has emphasised that ethanol and electric mobility should be viewed as complementary pillars of India’s energy transition. With nearly 300 million internal combustion engine (ICE) vehicles on the road, a diversified approach is essential to reduce crude oil dependence while enabling cleaner mobility.
“The debate should not be framed as ethanol versus EVs. India needs both. E20 provides an immediate pathway to reduce crude oil dependence and strengthen energy security, while EVs, hybrids and other technologies continue to scale. India’s energy transition must be based on multiple domestic energy pathways rather than dependence on a single technology,” said Dilip Patil, Regional Director, IFGE-West, Pune.
India has progressed from E5 in 2003 to nationwide E20 deployment by April 2025 and is now expanding higher ethanol blends, flex-fuel vehicles and second-generation (2G) ethanol. The launch of flex-fuel vehicles and the rollout of E85 stations mark the next phase of this transition, while 2G ethanol offers an opportunity to convert agricultural residue into fuel.
The expected impact of E20 on fuel efficiency is limited, with studies by ARAI, Indian Oil and SIAM indicating a 2%–6% reduction compared with E10. Testing has also not indicated widespread engine damage, while newer vehicles increasingly incorporate ethanol-compatible materials. Concerns are largely associated with the transition of older vehicles rather than the fuel itself.
Brazil’s experience further demonstrates the importance of combining ethanol adoption with consumer choice. The expansion of E85 infrastructure and flex-fuel vehicles in India can similarly enable consumers to choose higher ethanol blends based on availability, vehicle compatibility and price.
Ethanol also strengthens India’s energy security by reducing dependence on imported crude oil while creating demand for domestic agricultural resources. The expansion of corn, surplus broken rice and 2G agricultural-residue-based ethanol can further diversify the feedstock base.
According to figures cited by IFGE, the E20 programme has helped India save ₹1.84 lakh crore in foreign exchange and reduce crude oil imports by 30.2 million metric tonnes.
India’s energy transition therefore need not be an either-or choice. EVs, ethanol, hybrids, CNG and hydrogen can serve different segments of the mobility ecosystem, creating a balanced and resilient pathway towards lower emissions and greater energy independence.
