AIDA Backs Draft Motor Vehicle Rule Changes Allowing E100, E85 Fuels

The All India Distillers’ Association (AIDA) has welcomed the draft notification issued by the Ministry of Road Transport and Highways (MoRTH) proposing amendments to the Central Motor Vehicles Rules (CMVR), 1989, to permit higher ethanol-blended fuels, including E100 and E85, along with Hydrogen-CNG.

The draft introduces E100 (pure ethanol) as a recognised automotive fuel category through a dedicated compliance annexure, enabling regulatory approval for vehicles designed to run entirely on ethanol. It also formalises provisions for E85 and Hydrogen-CNG within the existing framework.

AIDA said the move shifts ethanol’s role from a blending component to a primary fuel and provides regulatory clarity for automobile manufacturers to develop and certify flex-fuel vehicles (FFVs). The association noted that the absence of formal recognition had previously limited large-scale deployment of such vehicles.

According to AIDA President Vijendra Singh, the notification provides long-term policy visibility for the distillery sector, allowing capacity expansion aligned with transport fuel demand. The industry now expects faster commercial rollout of FFVs as testing and certification processes become clearer.

The association also highlighted procedural changes under Rule 115, stating that streamlined emission testing norms would reduce delays for certification agencies such as ARAI and support quicker product approvals.

India’s fossil fuel import bill, estimated at ₹22 lakh crore, remains a key concern for policymakers. AIDA said the Ethanol Blending Programme has already contributed foreign exchange savings of about ₹1.70 lakh crore, and wider adoption of high-blend ethanol fuels could further reduce dependence on crude imports.

The industry body emphasised that ethanol production, based on sugarcane and food grains, could support domestic agriculture by creating sustained demand for feedstock. It added that higher ethanol usage would retain energy spending within the domestic economy.

AIDA Deputy Director General Bharati Balaji said the policy could strengthen rural income streams through increased procurement of agricultural produce for ethanol production, while the industry is preparing to scale supply chains for E85 and E100 fuels.

Key provisions in the draft notification include:

• Recognition of E100 and Hydrogen-CNG as type-approved fuels

• Enabling mass production and certification of flex-fuel vehicles

• Alignment of emission testing and compliance procedures

• Support for reduced crude oil imports and alternative fuel adoption

The draft rules are part of the government’s broader strategy to diversify India’s fuel mix and advance lower-emission transport solutions.

The All India Distillers’ Association, established in 1953, represents grain-based and molasses-based ethanol manufacturers as well as potable alcohol producers, and engages in policy advocacy related to bioenergy and fuel ethanol in India.