India's Chief Economic Adviser V. Anantha Nageswaran proposed using E10 ethanol-blended fuel for older two-wheelers while maintaining E20 for newer vehicles.
The proposal addresses potential engine damage in older models and the economic tension between using crops for food or fuel. Because ethanol production often relies on maize, the government is evaluating the impact on food security.
Nageswaran's suggestion comes as India manages a massive fleet of legacy vehicles. There are approximately 75 million to 80 million two-wheelers in the country originally designed for an E10 blend [1]. While E20 fuel contains 20% ethanol by volume [2], older engines may not be compatible with such high concentrations.
The move highlights a divide between government economic advisors and industry players. Some industry experts said E20 petrol is safe for older vehicles based on years of testing [3]. Mahindra also said its older petrol cars are compatible with E20 fuel [4].
Despite these industry assurances, Nageswaran said there is a need for a comprehensive cost-benefit assessment before committing older vehicles to higher ethanol blends [5]. This approach seeks to balance the environmental goals of ethanol blending with the practical reality of vehicle longevity.
The proposal was reported in July 2026 as part of a broader review of India's fuel strategy [6]. The government continues to weigh the benefits of reduced petroleum imports against the risks of engine degradation and agricultural shifts.
“India has around 75-80 million two-wheelers that were originally designed for an E10 blend.”
This proposal signals a cautious shift in India's aggressive ethanol blending roadmap. By suggesting a tiered system, the government is acknowledging that a one-size-fits-all fuel policy could lead to widespread mechanical failures in the millions of legacy two-wheelers that dominate Indian roads. Furthermore, the focus on the 'food-vs-fuel' trade-off indicates that agricultural price stability and food security are becoming primary constraints on the country's transition to renewable fuels.
