Summary of this article
India approves 100 percent ethanol fuel framework to reduce oil imports.
Gadkari announces ethanol vehicles, flex-fuel cars, and hydrogen pilot project.
Government promotes biofuels through higher blending and excise duty exemptions.
India is moving ahead with alternative fuel adoption as it has now formally cleared the regulatory framework for the use of 100 per cent ethanol (E100) as a vehicular fuel. The move is expected to support the rollout of ethanol-powered cars and two-wheelers while reducing dependence on crude oil imports.
Union Minister of Road Transport and Highways Nitin Gadkari had said that India has finalised regulations to legally authorise the use of ethanol as a fuel option for vehicles. According to a video posted by news agency ANI on X (formerly Twitter), Gadkari said at a press conference in Nagpur: “Last night at 8 PM, I signed the file, finalising the regulations to legally authorise the use of 100 per cent ethanol.”
He said he was pleased to launch the 100 per cent ethanol-compatible version of the Maruti Suzuki WagonR. Union Minister of Petroleum and Natural Gas Hardeep Singh Puri was also present with Gadkari at the launch event of Maruti Suzuki’s flex-fuel car on June 4, 2026.
Gadkari said Hero MotoCorp has introduced two flex-fuel motorcycle models capable of running on 100 per cent ethanol. He added that automobile companies, including Toyota, Suzuki, MG and Hyundai are expected to introduce similar ethanol-compatible vehicles within the next one-and-a-half months.
He further said such efforts in the automobile sector are part of a broader push towards alternative energy solutions. Gadkari also announced that a pilot project will soon be launched in Nagpur, which will include a hydrogen refuelling station and two hydrogen-powered buses.
He said the hydrogen buses will be powered by green hydrogen produced from water using an electrolyser, and will be made available for public use.
According to him, ethanol is set to emerge as a viable alternative to petrol as more vehicles become compatible with the fuel. On India’s dependence on fossil fuel imports, ANI reported that Gadkari said ethanol is expected to emerge as a viable alternative to petrol and could help reduce the country’s import burden, estimated at around Rs 22 lakh crore.
This comes after the government moved to promote higher ethanol blending by exempting petrol with more than 20 per cent ethanol from central excise duty, as part of its broader push to reduce crude oil imports and support biofuel adoption, according to a notification issued by the Department of Revenue on June 10 covering blends of 22 per cent, 25 per cent, 27 per cent and 30 per cent ethanol meeting BIS specification IS 19850.
