The government is looking to move beyond the 20 per cent ethanol-blending target as flex-fuel vehicles are expected to enter the market, advisor to the Prime Minister Tarun Kapoor said on Wednesday.Speaking at The India Sugar & Bio-Energy Conference 2026, Kapoor said the country’s ethanol programme had reached a stage where higher blending could be considered. “Now our focus is on going into flexi-fuel vehicles and allowing blending at a percentage which will be higher than E20,” he said, as quoted by PTI.Kapoor said several automakers had indicated plans to introduce flex-fuel vehicles. Along with this, fuel stations would need to make pure ethanol available to consumers.The move comes as India seeks to make greater use of domestically produced biofuels amid renewed concerns over crude supplies following the West Asia conflict.“It is important that we try to have whatever is available in the country,” Kapoor said, referring to the need to maximise the use of domestic fuel resources.India now has more ethanol production capacity than is required for the current blending programme, Kapoor said. The industry therefore needs to find other applications for the surplus, he added.Kapoor also defended the E20 programme against recent criticism, saying concerns were largely driven by misinformation or “motivated reasons”. According to him, studies have found that E20 performs well, while the small reduction in fuel efficiency is offset by the fuel’s higher octane content.The government is also examining options for increasing biofuel use in diesel. Kapoor said trials involving isobutanol could potentially create a “large” new market for biofuels, particularly given diesel’s substantial share of refinery output.He also called for greater participation by ethanol producers in compressed biogas (CBG), pointing to the government’s GOBARdhan scheme, which combines incentives offered by different ministries. Other opportunities include value-added products such as potash.The government remains “totally committed” to the biofuels sector and will ensure that existing investments are not exposed to uncertainty as the industry expands, Kapoor said.
