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India Aims to Achieve 100% Ethanol Blending Amid Energy Crisis

India's Road Transport and Highways Minister, Nitin Gadkari, emphasized the need for the country to become self-reliant in the energy sector, citing vulnerabilities in oil exports amid the West Asia crisis. Speaking at the Indian Federation of Green Energy's Green Transport Conclave, Gadkari stated that India should aspire to achieve 100% ethanol blending in the near future.

The minister noted that the country currently relies on imports to meet 87% of its oil requirement, with fossil fuel imports worth Rs 22 lakh crore causing pollution. He emphasized the need to increase production of alternative fuel and bio-fuel, highlighting the success of countries like Brazil, which has achieved 100% ethanol blending.

In 2023, Prime Minister Narendra Modi launched petrol blended with 20% ethanol, which Indian vehicles can run on with minor changes to the engine to prevent corrosion and other issues. However, Gadkari stated that the Corporate Average Fuel Efficiency III standards, set to be implemented from April 1 next year, will have little impact on electric and flex-fuel vehicles.

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Gadkari also emphasized the importance of green hydrogen, stating that it is the fuel of the future. However, he noted that reducing the cost of running a hydrogen fuel station is essential to make it financially viable. The minister also highlighted the need to produce hydrogen from waste, which could create more employment opportunities and make India an exporter of energy.

CountryEthanol Blending Percentage
India20% (E20 petrol)
Brazil100%

The minister acknowledged the growing concern about E20 on social media, attributing it to lobbying by the petroleum sector against the move. Gadkari emphasized the need for automobile companies to focus on quality, not cost, to penetrate new markets.

Investor Takeaway

India aims to become self-reliant in the energy sector by achieving 100% ethanol blending.

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