India can significantly boost ethanol use as a vehicle fuel by retrofitting a portion of the existing BS-VI vehicle fleet with Flex Fuel Vehicle (FFV) kits.
This will boost energy security, lessen crude oil imports and increase ethanol consumption by the automobile sector.
According to the industry proposal, converting just 25% of the country's BS-VI two-wheelers and 10% of four-wheelers with FFV kits could create an additional annual ethanol utilisation potential of nearly 460 crore litres.
Currently, India has 8.7 crore BS-VI two-wheelers and 1.4 crore BS-VI four-wheelers on the road.
Uptick in ethanol consumption
The two-wheeler sector alone could consume an estimated 355 crore litres of ethanol per year, while four-wheelers contribute another 105 crore litres under a proposed conversion plan.
Industry said the FFV kit conversion proposal will absorb the excess ethanol production in key producing states like Maharashtra, Karnataka and Uttar Pradesh.
The proposal estimates that using more ethanol would lead to almost 1.5 crore barrels of crude oil savings per year. In monetary terms, this equates to around USD 1.5 billion worth of avoided crude oil imports annually.
With the existing E20 ethanol blending programme, the total crude oil savings potential would be better than 6 crore barrels per annum, with a reduction in import expenditure of almost Rs 13,000 to 14,000 crore.
The conversion strategy is envisioned as an economically feasible and scalable route to enhance India's energy security. This would enable it to extract as much local benefit from the initiative as possible, with a view to providing demand support for sugar mills and biofuel producers as ethanol-surplus states create better regional markets.
Boost to "Aatmanirbhar Bharat"
The proposal also fits into the project-wide vision, "Aatmanirbhar Bharat", by reducing reliance on imported forms of fossil fuels and increasing the use of renewable sources already made at home.
"More ethanol, less oil and a stronger economy" is its main message, and it promotes smarter fuel decisions to help the country build long-term energy resilience.
Atul Chaturvedi, Director, Shree Renuka Sugars Ltd, said that any action to expedite the introduction of FFVs is welcome. "However, it's important to have infrastructure for 100% ethanol dispensing in place before any major launch. It may be more advisable to first introduce it in a limited geographical area and then gradually scale up as the infrastructure gets ready," he said.
Atul Mulay, Chairman, IFGE & President - Corporate Strategy, Praj Industries, said that the two-wheelers are the backbone of India's rural economy and mobility ecosystem.
Faster adoption of FFVs
"As India welcomes the transition toward Flex Fuel Vehicles, it is equally important to make certified FFV retrofit kits accessible for the existing vehicle population, especially in rural India. The country is ready - we already have the agricultural base, ethanol production capacity, and automotive ecosystem required to support this transition. A scalable retrofit programme can simultaneously strengthen India's energy security, support farmers, reduce crude oil imports, and accelerate the journey towards Aatmanirbhar Bharat," Mulay said.
Vijendra Singh, President, All India Distillers' Association (AIDA), said thatconversion of existing BS-VI vehicles through Flex Fuel Vehicle (FFV) kits can play a significant role in accelerating India's transition towards cleaner and more sustainable mobility. Since BS-VI vehicles are already equipped with advanced emission control technologies, they are technically better suited for adaptation to higher ethanol blends.
Singh said that a key benefit of FFV conversion is that it allows a large section of the existing vehicle fleet to utilise higher ethanol blends such as E20, E85 or even E100, without waiting for complete fleet replacement. This can substantially enhance ethanol adoption in the transportation sector in a faster and more cost-effective manner.
"Greater ethanol usage would help reduce India's dependence on crude oil imports, improve energy security, and support the government's broader decarbonisation goals. Ethanol is a domestically produced renewable fuel, and its increased utilisation can also contribute to lower vehicular emissions and better urban air quality. Also, the expansion of the ethanol ecosystem would generate stronger demand for agricultural feedstocks, thereby supporting rural incomes, investments in biofuel infrastructure, and growth of the domestic bio-economy," he stated.
Policy framework for FFV kit
Singh added that tofast-track FFV kit adoption in existing BS-VI vehicles, a supportive and enabling policy framework will be essential.
"Firstly, there is a need for clear and uniform regulatory standards for FFV kit manufacturing, certification, installation, and safety approvals. A streamlined homologation process can help reduce delays and encourage wider participation from automobile manufacturers and technology providers," he said.
Singh said fiscal incentives such as reduced GST on FFV kits, retrofitting incentives, or state-level support measures can improve affordability and accelerate consumer adoption.
"Thirdly, expansion of ethanol dispensing infrastructure across fuel stations will be critical to build consumer confidence and ensure convenient access to higher ethanol blends. Awareness generation is another important aspect. Consumers need greater clarity regarding the economic and environmental benefits of flex-fuel mobility, including potential fuel cost savings and reduction in carbon emissions," he said.
Singh added that stronger coordination between the automotive industry, fuel retailers, ethanol producers, and policymakers will be important to create a phased and practical roadmap for scaling up flex-fuel mobility in India.
Industry veterans said that the Government should immediately roll out a National Policy that will enable the conversion of the existing fleet with FFV kits, consequently helping with the nationwide rollout of FFVs. It will help build the momentum amongst the consumers who would be aware of flex fuels and its several advantages.