The central government plans to launch two pilot projects in Assam and Maharashtra, wherein it would operate a total of 20 Mercedes-Benz buses fuelled by methanol as part of efforts to promote alternative fuels, a top official said, according to PTI.

The report states that the plans for the launch was discussed in a group of ministers (GoM) meeting on methanol yesterday, chaired by the Nitin Gadkari, central minister for Road Transport & Highways, Shipping and Water Resources, River Development & Ganga Rejuvenation.

The meeting saw discussion on projects in detail to boost methanol production in the country besides its promotion, the official said adding methanol can reduce India's crude oil imports by 20 percent.

"The government is considering to launch two pilot projects to promote methanol. The projects being planned to launch in Maharashtra and Assam will see running of a fleet of 10 buses each in both the states, fuelled by methanol," the official told PTI.

He also said that the projects would be sponsored by the Ministry of Road Transport and Highways, and the petroleum ministry was also looking at the possibilities of a methanol policy.

Apart from Gadkari, the meeting was attended by Petroleum Minister, Dharmendra Pradhan; Heavy Industries and Public Enterprises Minister, Anant Geete and Fertiliser Minister, Ananth Kumar.