AIDA Urges Govt to Push Higher Ethanol Blending and Flex-Fuel Adoption 

The All India Distillers’ Association (AIDA) has written to Union Minister Nitin Gadkari, calling for accelerated policy action to expand ethanol usage in India’s fuel mix. The industry body has proposed increasing ethanol blending in petrol beyond the current 20% level and fast-tracking the adoption of flex-fuel vehicles, citing rising geopolitical uncertainties and crude oil price volatility.

In a letter dated March 21, AIDA highlighted that India has already achieved its E20 ethanol blending target ahead of schedule, crediting government policy support and industry efforts. However, the association warned that ongoing tensions in the Middle East and the resulting upward pressure on oil prices could strain India’s energy security and economy.

Positioning ethanol as a strategic solution, AIDA stated that increasing blending levels from 20% to 30% could significantly reduce crude oil imports. It also strongly advocated for the introduction of flex-fuel vehicles capable of running on 100% ethanol, similar to models widely used in Brazil, to create sustained demand and support higher blending targets.

The association further recommended expanding ethanol’s role beyond transport fuels. It proposed the introduction of ethanol-based cooking solutions, including ethanol burners, for domestic and commercial use. According to AIDA, such applications could serve as a cleaner alternative fuel, particularly in semi-urban and rural areas, while also addressing indoor air pollution and diversifying energy sources.

Additionally, AIDA suggested exploring ethanol blending in diesel as a potential measure to help contain fuel costs and broaden the scope of ethanol utilisation.

Emphasising the need for a supportive ecosystem, the industry body underscored the importance of accelerating the rollout of flex-fuel vehicles capable of operating on higher ethanol blends, including E85 and above. This, it said, would be critical in ensuring long-term demand stability for ethanol producers.

AIDA has sought an opportunity to present a detailed roadmap and industry perspective to the ministry, outlining how these measures could collectively strengthen India’s energy security while advancing its clean energy transition.