Ethanol Program Key to India's Energy and Farm Future
India's ethanol blending program is poised to become a cornerstone of the nation's energy security, agrarian relief, and climate goals, with E20 set as the standard fuel for all vehicles sold after April 2023. Vikram Gulati, Country Head and Executive Vice President of Corporate Affairs and Governance at Toyota Kirloskar Motor, made the remarks in an exclusive interview with ANI.
E20 Compatible with All Vehicles
Gulati emphasized that E20—a blend of 20% ethanol with petrol—is safe for both old and new vehicles. “E20 is the standard fuel that will be available and it is compatible with old vehicles and new vehicles,” he stated. All vehicles sold after April 1, 2023, are fully materially compliant with E20, he added. However, higher blends like E85 and E100 require flex-fuel technology and are not intended for regular cars.
Addressing Energy Deficit and Farm Distress
Gulati traced the ethanol program's origins to India's structural energy deficit. “India has always been energy deficient. We import huge amounts of crude, which has a very negative impact on our economy. It also has a negative impact on the environment and also we are susceptible to any disruption in supply,” he said, citing the recent West Asia crisis as an example. The program gained momentum after 2018 when the government linked it to solving farm distress. Surplus sugarcane and rice were going to waste; instead of spending taxpayer money on exporting excess sugar, the government promoted ethanol production from molasses and surplus foodgrains.
The impact has been substantial. “The program so far has helped save 1.9 trillion rupees. Usme se 1,60,000 crores has gone to farmers,” Gulati noted. Farmer incomes have risen across states including Bihar and Uttar Pradesh, particularly in sugarcane-growing regions.
Environmental and Myth-Busting
Calling ethanol “the best fuel if you want to fight climate change,” Gulati explained its carbon-neutral cycle: plants absorb CO₂ as they grow, and when ethanol is burned, that CO₂ is reabsorbed by new plants. Addressing myths, he cited a 2021 study by ARAI, India's leading auto testing agency, which “clearly established that the possible damage to cars and two wheelers which are old is not there. It is very insignificant.” On mileage, he acknowledged a 2-4% loss but said it is not as severe as portrayed. He also dismissed pollution concerns about ethanol plants, noting that all Indian plants require environmental clearances, operate as zero-effluent units, and reuse by-products like bagasse, making them “extremely clean.”
