India is to allow carmakers to produce vehicles running on 100% ethanol, transport minister Nitin Gadkari said at an event this week.
Policy measures for the ethanol vehicles, which will have flexible-fuel capability to also use other fuels, will be announced by January 26. The minister told a conference of sugar mills, as cited by Reuters, that the move would not only reduce the country’s dependence on oil imports but would also help reduce pollution. The announcement came as the Supreme Court of India temporarily prohibited the sale of large diesel cars in heavily polluted New Delhi.
Reuters said that adoption of the new measure is expected to be slow as India is already struggling to source the ethanol to meet its current blending target of 5%.
The Indian Sugar Mills Association has expressed readiness to double ethanol supply in 2015/16 to 1.25 billion-1.30 billion liters. Even if none of that is sold to liquor producers, the supply will still be short of the blending requirement, Reuters said.
India does not allow ethanol imports.
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