Exclusive. India to scale down ethanol blending target to 18% for ESY 2024-25 amid compatibility concerns
The Indian government is expected to scale down the ethanol blending target to 18% for the 2024-25 ethanol supply year, instead of the previously planned 20%, due to concerns from the automobile industry. Older vehicles, especially those not compliant with Bharat Stage-VI norms, could face damage to fuel pipes and reduced mileage with E20 fuel. Discussions are ongoing about ensuring feedstock availability and long-term solutions for the ethanol blend.
The government is likely to scale down the percentage of ethanol to be blended with petrol to 18 per cent, against the projected 20 per cent, in the ethanol supply year 2024-25 (November-October) as the vast majority of petrol-fired vehicles, barring Bharat Stage-VI, are not compatible with running on E20 fuel. Under the ethanol-blend petrol (EBP) programme, the government projected to blend 20 per cent ethanol with petrol, E20 fuel, in the ethanol supply years (ESY) 2024-25 and 2025-26.
“The 20 per cent target will be scaled down to 18 per cent as not all vehicles can run on E20. We discussed this issue with the auto industry as well as other stakeholders. We are working on how to tackle these issues,” a top government official said. Another top official said that the availability of feedstock was also raised. “Auto industry and some other stakeholders raised the issue of long-term availability of E20 fuel, which is an important matter. We are also working on this with the Ministries of Agriculture and Oil on having various feedstock options for long term availability as well as ensuring food security,” the official explained. Another senior government official said that there is also the issue of loss of mileage for old vehicles that run on E20 fuel, which will lead to higher petrol consumption and de-incentivise people from using E20. “This is an important issue and the Ministries of Oil, Agriculture, Heavy Industries as well as the Prime Minister’s Office (PMO) are looking into this matter. Various research initiatives are in the offing to address the issue of low mileage,” the official added.
A top automobile industry executive said, “We are ready for E20, and from April 1, 2025, all vehicles produced will be E20 compliant. BS-VI vehicles, produced since April 2023, are already compliant. However, there are issues with old vehicles.” For the existing vehicles, the issue has been going on for some time. Industry’s demand has been to continue with the E10, or production grade fuel, for older vehicles because E20 can damage their fuel pipes, the executive added. “Automotive Research Association of India (ARAI) has formed a committee to test these vehicles and they will prepare a report on whether old vehicles can be run on E20. A decision can be taken after the report comes,” said another industry source. Another senior industry source said, “E20 fuel in old two-wheelers and passenger vehicles may lead to corrosion in the fuel pipes. However, some original equipment manufacturers (OEMs) are working on that issue, too, by providing retrofitting of the fuel pipes to replace older fuel pipes.” This issue has been going on for the last five years, and the industry has said that putting E20 fuel in E10-compliant vehicles could be damaging, he added.
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Source : Hindu BusinessLine
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