CEA Nageswaran Pitches E10 Petrol Alongside E20 For Older Vehicles

Chief Economic Adviser V Anantha Nageswaran has proposed making E10 petrol available again for older vehicles alongside E20, arguing that the option could address concerns among owners whose vehicles were designed for lower ethanol blends. India has transitioned to E20 petrol, containing 20 per cent ethanol, across the country as part of its broader biofuel programme. Nageswaran made the suggestion in an opinion article co-authored with Akash Poojari.

Nageswaran noted that India has an estimated 75-80 million two-wheelers built for E10, with many older vehicles not designed for higher ethanol blends. He argued that the concerns involve more than fuel efficiency, as higher ethanol concentrations can affect certain vehicle components, including rubber seals and fuel-system parts. Older carburettor-based vehicles may also face compatibility issues when using higher ethanol blends.

The CEA proposed allowing owners of older vehicles to purchase E10 while newer vehicles continue using E20. He argued that maintaining access to the lower blend could help protect the existing vehicle fleet while retrofit programmes expand and older vehicles are gradually replaced. He also sought to correct what he described as exaggerated claims about E20, noting that the energy penalty from ethanol blending is estimated at around 6-7 per cent rather than much higher figures circulating publicly.

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The wider debate centres on how quickly India should transition to higher ethanol blends and how the costs of that transition should be distributed. The ethanol programme is intended to reduce dependence on imported crude oil while creating a domestic market for ethanol produced from feedstocks such as sugarcane and maize. At the same time, Nageswaran has raised concerns about the potential food-versus-fuel trade-off, including implications for land, water and food availability as demand for ethanol feedstocks grows.

The proposal has drawn criticism from parts of the ethanol industry. Kushal Mittal, Vice President of the All India Distillers' Association, argued that India should not reverse an evaluated policy on the basis of public sentiment. He maintained that the E20 transition followed pilot trials and subsequent evaluations involving automobile manufacturers. According to Mittal, scientific evidence, testing and objective data should remain the basis for decisions on fuel policy.

Mittal also defended E20 as an important part of India’s energy-security strategy, arguing that higher ethanol blending can reduce reliance on imported fossil fuels and strengthen the domestic biofuel industry. He pointed to potential benefits for farmers, distilleries and other participants in the ethanol supply chain. The debate therefore reflects two policy priorities: continuing the transition towards higher ethanol blends for energy security while addressing the practical concerns of millions of owners of older vehicles.

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