Is India Ready For Higher Ethanol Blends? ISMA DG Deepak Ballani Explains Fuel Transition

India's ethanol blending journey is gaining serious momentum, but how ready are we for the next leap? In this exclusive NDTV AutoMate interview, ISMA Director General Deepak Ballani breaks down the rise of flex-fuel vehicles, India's shift to E20, and the roadmap towards higher blends like E85 and E100.

From boosting farmer income and reducing oil imports to cutting carbon emissions, ethanol is reshaping the automotive and energy landscape. But what about infrastructure, policy gaps, and existing vehicles?

And where do flex-fuel vehicles stand against EVs and hybrids? Deepak Ballani deliberates on the future of clean mobility in India and why a multi-technology approach could be the way forward.

NDTV AutoMate: What exactly are flex-fuel vehicles? How do they work?

Deepak Ballani, ISMA DG: A flex-fuel vehicle essentially uses a modified internal combustion engine that can run on varying ethanol blends-from E0, which is pure petrol, all the way up to E100.

Most OEMs today are ready with flex-fuel vehicles. These engines are designed with components that can handle higher ethanol blends such as E85 and E100.

Take Brazil, for example-about 90% of its vehicle fleet is flex-fuel capable and runs on high ethanol blends. That's the direction we're aiming for in India as well.

ALSO READ - Global Crude Crisis, Rising Petrol-Diesel Prices: Is Hydrogen The Future Fuel?

NDTV AutoMate: When we talk about ethanol blending, how does it really impact costs, the industry, and the overall economy?

Deepak Ballani, ISMA DG: If you look at India's journey, we started with just 1% ethanol blending about a decade ago, and today we've reached E20.

The impact has been phenomenal. It has significantly improved energy security, reduced dependence on fuel imports and boosted rural economy and farmer incomes

In fact, due to the ethanol program, India has avoided importing around 4.5 crore barrels of fuel-a huge saving. Additionally, farmers have seen an estimated Rs 1.5 lakh crore in additional income, largely driven by ethanol demand.

On the environmental side, ethanol has helped reduce carbon emissions and pollution, making it a key part of India's clean energy transition.

NDTV AutoMate: We're currently at E20, with discussions around moving further ahead. But how ready are we on the ground-for higher blends, farmers, and the industry ecosystem?

Deepak Ballani, ISMA DG: There are multiple stakeholders in this ecosystem: Farmers, ethanol producers, sugar mills, grain-based ethanol suppliers, oil marketing companies (OMCs) and OEMs. The good news is apart from policy, the entire ecosystem is ready.

Today, India has a production capacity of nearly 2,000 crore litres of ethanol, while E20 demand is only around 1,100 crore litres. So, we already have surplus capacity.

This means we can easily move towards higher base blends of E35-E40, and dedicated high-blend fuels like E85 and E100. OEMs are already prepared. Many showcased flex-fuel models at the mobility expo last year. The only missing piece right now is policy support.

ALSO READ - Driving This Summer? These 5 Car Care Tips Can Save You Big Trouble

NDTV AutoMate: From a consumer standpoint, what's the real benefit of choosing a flex-fuel vehicle?

Deepak Ballani, ISMA DG: For consumers, the key benefit lies in lower running costs. Higher ethanol blends like E85 and E100 are expected to be cheaper than petrol-based fuels, which helps offset the slight drop in fuel efficiency.

Additionally, with expected GST rationalisation, the overall cost of ownership of flex-fuel vehicles could come down. Environmentally, flex fuel has very low lifecycle emissions. Even lower in some cases than EVs when you factor in the full lifecycle. So it's a win-win for the consumer and the environment.

NDTV AutoMate: What about existing vehicles already on the road? Can they handle higher ethanol blends?

Deepak Ballani, ISMA DG: Most current vehicles are E20 compliant and can tolerate slightly higher blends like E22. However, E85 and E100 are meant specifically for flex-fuel vehicles. Existing cars cannot use these fuels directly.

In the future, we could explore conversion kits, similar to what we saw with CNG adoption. But for now, high ethanol blends are primarily intended for new flex-fuel vehicles.

Deepak Ballani, Director General, ISMA

NDTV AutoMate: What's the response been like from OEMs and oil companies as you push for higher blends?

Deepak Ballani, ISMA DG: The response has been very positive. OEMs are ready with vehicles. Ethanol producers have adequate supply. Oil marketing companies are working on storage and dispensing infrastructure. For E85 and E100, we'll need dedicated fuel pumps and dispensing systems.

All stakeholders are aligned. It's really a matter of policy enabling the transition.

NDTV AutoMate: Another concern we often hear is about sustainability, especially water usage and long-term viability of ethanol. Your thoughts?

Deepak Ballani, ISMA DG: Sustainability is often misunderstood. First, ethanol produced in India is primarily derived from surplus agricultural produce and not from essential food supply.

Second, the industry is now moving towards second-generation ethanol, which uses agro-waste and crop residue like paddy straw and bagasse. This makes the entire process much more sustainable.

From a climate perspective, ethanol has one of the lowest carbon emission indices, making it critical for achieving India's climate goals. In short, availability, sustainability, and continuity are all well supported.

NDTV AutoMate: With EVs gaining traction, where do you see flex fuel standing against EVs and hybrids?

Deepak Ballani, ISMA DG: We're not against EVs at all. India requires a multi-pronged approach. Given our scale and diversity, a single solution won't work.

We need EVs, hybrids, flex-fuel vehicles and biofuels like CBG. EVs have their challenges: Charging infrastructure, grid capacity, and lifecycle emissions. Flex fuel, on the other hand, uses existing infrastructure and supports farmers and the rural economy.

So, the future isn't about one versus the other-it's about balance across multiple clean mobility pathways.