It has issued a draft to amend Central Motor Vehicles Rules, 1989 to include E85, E100 ethanol fuels and B100 biodiesel for vehicle certification and use. 

About Ethanol Blending

• This involves blending different percentages of ethanol with petrol to produce a fuel that burns cleaner and is more sustainable.
• Types: E10 (10% Ethanol by Volume), E20 (20% Ethanol), E85 fuel (85% Ethanol) etc. 
  • The use of E-20 gives better acceleration, better ride quality and lowered carbon emissions by approximately 30% as compared to E10 fuel.  

Significance of Ethanol Blending

• Reduced Carbon Emissions: Sugarcane and maize-based ethanol reduce GHG emissions by 65% and 50%, respectively, compared to petrol (NITI Aayog Study).
• Reduce Imports: Ethanol blending programme has saved about ₹1.08 trillion in foreign exchange since 2014 (till 2024), reducing dependence on fuel imports.
• Energy Security: India’s heavy dependence on imported crude makes it vulnerable, and ethanol blending reduces this risk.
• Others: Economic growth, Crop diversification, Fuel Efficiency, Rural Development etc.