India’s move to permit vehicles capable of running on nearly pure ethanol has faced a supply-side question in the Supreme Court, which asked the Centre how fuel would be made available if E100 vehicles are approved for use. The query comes as the government maintains that it has no immediate plan to raise ethanol blending in petrol beyond the current 20% level.
A bench of Justices M M Sundresh and Prasanna B Varale raised the issue while hearing pleas related to ethanol allocation for Ethanol Supply Year (ESY) 2025-26. The bench referred to recent media reports on the government’s decision to permit vehicles that can run on up to E100 fuel.
“Academically, we want to know if the permission is given to have 100 percent ethanol run vehicles, how will you make the supply,” the bench said, according to the report. The question focused on the gap between allowing a vehicle technology and ensuring that the fuel required by those vehicles is available through the supply network.
Attorney General R Venkataramani told the court that the transition would require “large scale manufacturing re-arrangements”. The hearing therefore brought vehicle manufacturing and fuel availability into the same policy discussion, even as the court examined disputes over the allocation of ethanol to oil marketing companies.
The Ministry of Road Transport and Highways amended the Central Motor Vehicles Rules, 1989, on October 26 to permit flex-fuel vehicles capable of operating on blends up to E100. The amendments updated emission certification provisions by expressly including E100 alongside E85. E100 fuel contains nearly pure ethanol, while E85 consists of 85% ethanol and 15% petrol.
The ministry’s changes do not affect vehicles designed for E20 fuel, according to the report. E20 refers to petrol containing 20% ethanol, the current blending level cited by Petroleum and Natural Gas Minister Hardeep Singh Puri. On October 27, Puri said the Centre had no immediate plan to increase ethanol blending in petrol beyond 20%.
The Supreme Court also highlighted the interests of farmers and the environmental implications of ethanol policy during the hearing. Justice Sundresh said the matter needed to be considered from the perspective of larger public interest, the environment and the need to empower farmers, particularly those living in villages. One advocate submitted that ethanol promotion could benefit farmers, while another said these interests were already reflected in the central government’s policy.
The hearing is linked to a dispute over ethanol allocation for ESY 2025-26. On June 30, the Supreme Court ordered status quo on a Karnataka High Court direction concerning enhanced ethanol allocation. The case involves a plea by an oil marketing company, which argued that the High Court’s direction could destabilise the national policy of 20% ethanol blending in petrol.
The Karnataka High Court had directed Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and Indian Oil Corporation Limited to consider a representation from a dedicated ethanol manufacturer seeking enhanced allocation for ESY 2025-26. The High Court held that dedicated ethanol plants established under government policy and contractually required to supply ethanol exclusively to oil marketing companies could not be denied preferential allocation contemplated under their long-term offtake agreements.
The Supreme Court has posted the matter for hearing next month. The Centre is expected to address the farmers’ interests and the broader implications of ethanol allocation during the continuing proceedings.
