India needs a diversified energy strategy that combines ethanol, electric vehicles (EVs), hybrids, CNG and hydrogen rather than relying on a single mobility technology, the Indian Federation of Green Energy (IFGE) has said amid the ongoing debate over the country’s Ethanol Blending Programme (EBP).
With nearly 300 million internal combustion engine (ICE) vehicles currently on Indian roads, IFGE said ethanol and electric mobility should be viewed as complementary components of the country’s energy transition. A multi-technology approach, it said, can help reduce crude oil dependence while supporting cleaner and more resilient mobility.
“The debate should not be framed as ethanol versus EVs. India needs both. E20 provides an immediate pathway to reduce crude oil dependence and strengthen energy security, while EVs, hybrids and other technologies continue to scale. India’s energy transition must be based on multiple domestic energy pathways rather than dependence on a single technology,” said Dilip Patil, Regional Director, IFGE-West, Pune.
India has progressed from E5 ethanol blending in 2003 to nationwide E20 deployment by April 2025. The country is now moving towards higher ethanol blends, flex-fuel vehicles and second-generation (2G) ethanol. According to IFGE, the introduction of flex-fuel vehicles and the rollout of E85 dispensing infrastructure represent the next phase of ethanol adoption, while 2G ethanol could enable agricultural residues to be converted into transport fuel.
Addressing concerns surrounding E20, IFGE said the reduction in fuel efficiency is expected to be limited. Studies by the Automotive Research Association of India (ARAI), Indian Oil and the Society of Indian Automobile Manufacturers (SIAM) have indicated a 2%–6% reduction in fuel efficiency compared with E10.
Testing has also not indicated widespread engine damage attributable to E20, while newer vehicles are increasingly being manufactured with ethanol-compatible materials. IFGE said most concerns are associated with the transition and compatibility of older vehicles rather than with the fuel itself.
The federation pointed to Brazil’s experience as an example of how ethanol adoption can be combined with consumer choice. In India, the expansion of E85 infrastructure and flex-fuel vehicles could similarly allow consumers to select higher ethanol blends based on fuel availability, vehicle compatibility and price.
Beyond emissions reduction, ethanol can contribute to India’s energy security by lowering dependence on imported crude oil while creating additional demand for domestic agricultural resources.
IFGE said expanding the use of corn, surplus broken rice and agricultural residues through 2G ethanol could further diversify the country’s ethanol feedstock base and strengthen the link between the agriculture and energy sectors.
According to figures cited by IFGE, the E20 programme has helped India save ₹1.84 lakh crore in foreign exchange and reduce crude oil imports by 30.2 million metric tonnes.
The federation said India’s energy transition should therefore not be treated as an either-or choice between conventional and emerging technologies. EVs, ethanol, hybrids, CNG and hydrogen can each serve different segments of the mobility ecosystem, collectively creating a more balanced pathway towards lower emissions, reduced oil dependence and greater energy independence.
The Indian Federation of Green Energy (IFGE) is a non-governmental, not-for-profit organisation established in 2014 to promote green, renewable and bio-energy initiatives in India. Its activities include policy advocacy, seminars, conferences, exhibitions, B2G and B2B meetings, and awareness programmes aimed at advancing the country’s clean-energy transition.
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