India is currently in talks with Nepal regarding the export of ethanol, as Nepal seeks to implement a 10% ethanol blending in its fuel. CK Jain, President of the Grains Ethanol Manufacturers Association of India (GEMA), indicated that India could supply ethanol to Nepal until the latter establishes its domestic production capabilities. This initiative is part of a broader strategy to supply ethanol to other SAARC nations, which include Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Jain emphasized that this could significantly reduce India's dependence on energy imports, targeting a 15-20% import substitution. He noted that while ethanol blending could save ₹40,000 crore annually at current levels, transitioning to higher blends like E85 and E100 could potentially increase savings to nearly ₹1 lakh crore. However, the success of these higher blends will depend on the availability of flex-fuel vehicles and consumer awareness, as current vehicles cannot utilize these blends. The Indian government is engaging with automobile manufacturers to facilitate the introduction of flex-fuel engines, which are essential for the higher ethanol blends. Jain pointed out that although ethanol may cause a slight reduction in mileage, the environmental and economic benefits are substantial.