Centre proposes motor vehicle rule changes to expand 100% ethanol fuel adoption

The Ministry of Road Transport and Highways issued a draft notification on 27 April 2026 proposing amendments to the Central Motor Vehicles Rules (CMVR) to f...

What Happened

The Ministry of Road Transport and Highways issued a draft notification on 27 April 2026 proposing amendments to the Central Motor Vehicles Rules (CMVR) to formally incorporate E85 (85% ethanol blend) and E100 (pure ethanol) fuels alongside existing E20 provisions.
The draft opens the regulatory door for flex-fuel vehicles and pure biofuel vehicles across all vehicle categories — two-wheelers, three-wheelers, passenger cars, and heavy commercial vehicles.
The proposal also covers B100 (pure biodiesel) and hydrogen-CNG fuel combinations, extending the scope beyond ethanol alone.
The draft notification has been published for a 30-day public consultation before final rules are notified.

Static Topic Bridges

National Policy on Biofuels, 2018 (Amended 2022)

The National Policy on Biofuels, 2018 was notified by the Government to promote use of biofuels in the energy and transportation sector. Its original indicative target was 20% ethanol blending in petrol by 2030. The 2022 amendment to the policy advanced this target to Ethanol Supply Year (ESY) 2025-26, reflecting India's faster-than-anticipated production ramp-up. The policy categorises biofuels into Basic Biofuels (first-generation), Advanced Biofuels (second-generation), and Drop-in Fuels, with ethanol from sugarcane, maize, damaged foodgrains, and agricultural residues as permitted feedstocks.

Original E20 target: 2030; revised to ESY 2025-26 under 2022 amendment
India achieved nationwide E20 blending in July 2025 — five years ahead of the original deadline
The policy permits use of surplus food grains for ethanol production during years of over-supply
Nodal ministries: Ministry of Petroleum & Natural Gas (ethanol blending programme); Ministry of New and Renewable Energy (biofuel R&D)

Connection to this news: The CMVR amendment is the enabling vehicle-technology counterpart to the biofuel policy — it creates a regulatory pathway for vehicles that can actually use E85 and E100 fuels produced under the policy's feedstock framework.

Central Motor Vehicles Rules (CMVR) and Fuel Standards

The Central Motor Vehicles Rules, 1989, framed under the Motor Vehicles Act, 1988, govern technical standards for vehicles, emissions, and permissible fuels. Fuel specifications are set jointly by the Ministry of Petroleum & Natural Gas (through the Bureau of Indian Standards) and the Ministry of Road Transport & Highways (through CMVR). E20 was first officially recognised as a motor fuel in 2022 when CMVR was amended to specify standards for E20-compatible vehicles.

Motor Vehicles Act, 1988 — parent legislation; amended most recently via Motor Vehicles (Amendment) Act, 2019
Bureau of Indian Standards (BIS) issues IS standards for fuel composition; IS 2796 covers motor gasoline
E20 classified as a monofuel (dedicated 20% blend); the new rules introduce E85 and E100 as separate fuel categories with distinct vehicle compatibility standards
E100 vehicles require corrosion-resistant fuel system materials; estimated to cost approximately ₹50,000 more than E20 variants

Connection to this news: The draft notification directly amends CMVR to add E85 and E100 as recognised fuel types, which is a prerequisite for automakers to invest in flex-fuel powertrains and for OMCs to set up dispensing infrastructure.

Flex-Fuel Vehicles (FFVs) and India's Energy Security Rationale

A flex-fuel vehicle (FFV) is one whose internal combustion engine can operate on more than one fuel — typically any blend of petrol and ethanol ranging from E0 to E85 or E100. FFVs use sensors and adaptive engine control units (ECUs) to automatically adjust fuel injection and ignition timing. India's push for FFVs is linked to energy security: India imports over 85% of its crude oil, spending approximately ₹12–13 lakh crore annually on oil imports. Domestically produced ethanol from surplus sugarcane and grain reduces this import dependency.

India's crude oil import bill: approximately ₹12.5 lakh crore (FY 2024-25)
Sugarcane is the primary feedstock for first-generation ethanol; second-generation ethanol from agricultural residue is being scaled
E100 infrastructure challenge: no dispensing stations currently exist; distribution network build-out is required
Carbon emissions: ethanol combustion is considered carbon-neutral on a lifecycle basis (CO₂ absorbed during crop growth offsets combustion emissions)

Connection to this news: The CMVR amendment is designed to send a market signal to vehicle manufacturers to begin introducing FFV platforms, which is the first step in building the commercial ecosystem needed for E100 adoption.

Ethanol Blending Programme (EBP) — Progress and Targets

The Ethanol Blending Programme is administered by Public Sector Oil Marketing Companies (OMCs) — Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum — which blend ethanol procured from distilleries into petrol before retail distribution. Blending levels progressed from 1.53% in ESY 2013-14 to 17.98% in ESY 2024-25, with the 20% milestone crossed in July 2025.

ESY (Ethanol Supply Year) runs from November to October
Blending trajectory: 1.53% (2013-14) → 5% (2019-20) → 10% (June 2022, five months early) → 20% (July 2025, five years early)
Next milestone: E30 (30% blending) by 2030 under the amended policy
Dedicated distillery capacity additions were incentivised through interest subvention schemes under the Department of Food & Public Distribution

Connection to this news: India having already "solved" E20 gives policymakers the confidence to push the CMVR framework towards E85 and E100 — the infrastructure and feedstock learning from EBP is the foundation for the next phase.

Key Facts & Data

E20 target originally set for 2030 under National Biofuel Policy 2018; achieved in July 2025
E20 = 20% ethanol + 80% petrol (by volume); E85 = 85% ethanol; E100 = 100% (pure) ethanol
Draft notification issued on 27 April 2026; 30-day public consultation period
Fuel categories proposed: E85, E100, B100 (pure biodiesel), H-CNG (hydrogen-CNG)
Covers all vehicle categories: 2-wheelers, 3-wheelers, passenger vehicles, heavy vehicles
Import dependence: India imports ~85% of crude oil requirements
PLI Scheme for ACC battery storage: ₹18,100 crore outlay (separate but related energy security context)
India's ethanol blending in ESY 2024-25: 17.98% as of February 2025