The Indian government has proposed amendments to the Central Motor Vehicle Rules, 1989, to allow vehicles to run on 100% ethanol (E100). This initiative aims to position ethanol as a primary transport fuel, thereby reducing dependence on imported crude oil and promoting the use of locally produced biofuels. The draft notification, dated April 29, suggests replacing references to E85 with E85 or E100 in various provisions, enabling higher ethanol blends. India produced approximately 20 billion liters of ethanol by March 2026, which is significantly higher than the current demand of 11 billion liters under the 20% blending mandate. This under-utilization of capacity has prompted calls for incentives for flex-fuel vehicles, which can run on any ethanol blend. The All India Distillers’ Association (AIDA) has expressed support for this move, highlighting its potential to transition ethanol from a blended component to a primary transport fuel. India's Ethanol Blended Petrol (EBP) program, launched in 2003, has gained momentum in recent years, with a target of 20% blending by fiscal year 2025-26. The government aims to enhance the use of biofuels while supporting local farmers through direct payments.