India steps up push for ethanol as fuel, automakers seek differential pricing
Subscribe to enjoy similar stories. New Delhi: The Union government is assessing the automobile industry's readiness to build vehicles powered by biofuels such as 100% ethanol (E100), even as the industry wants their prices to come down to make a smooth transition, two people with direct knowledge of the matter said. Ministries of road and petroleum separately met with industry executives this month to nudge them to make the shift, the people cited above said on the condition of anonymity.
Union road minister Nitin Gadkari and petroleum minister Hardeep Singh Puri chaired the two meetings respectively. Automakers are stepping up as well. Seven two-wheeler makers are preparing to launch at least one flex fuel vehicle each by the end of 2024, and five passenger vehicle makers plan to do so by late 2025 or early 2026, one of the two people cited above said.
Automakers pressed for lower prices or tax incentives for a smoother transition to ethanol, which is seen as vital to reducing the reliance on fossil fuels and curbing carbon emissions, the person said. The automakers also highlighted the need for differential pricing based on ethanol's energy content. For instance, they want E85 fuel, which contains 85% ethanol, to be about 35% cheaper than E10 that is currently mandatory, to ensure parity in running costs.
The petroleum ministry is reviewing requests for cheaper ethanol; while no official decision has been made, industry executives are pinning hopes on price support or subsidies to align ethanol costs with petrol, which would make blended fuels more competitive. Queries emailed to spokespersons for the road and petroleum ministries remained unanswered. The Indian government is actively promoting ethanol as a cleaner
. Read more on livemint.com
