NEW DELHI: The road transport ministry will notify the emission norms for flex-fuel cars, that can use both petrol and ethanol up to 100%, in the next one week.

This will enable car makers to manufacture new engines known as E100 and allow owners to switch between the two fuels.              

Barely hours after road transport minister Nitin Gadkari announced on Wednesday that his ministry will come out with norms by January 26, the department has fast-tracked the process. "We have already notified norms for heavy vehicles on diesel engines that can also use ethanol up to 95% (ED95)," a ministry official said.

Both E100 and ED95 are less polluting in comparison to the diesel and petrol vehicles. More use of ethanol will also reduce India's dependence on imported crude oil.

Addressing leaders of India Sugar Mills Association (ISMA), Gadkari said major automobile manufacturers are already selling cars with flex-fuel in countries, including Brazil, which is world's largest sugar producer. India ranks second in this list and the industry is facing a huge problem of sugar glut because of surplus production and falling international prices of the sweetener. "Producing more ethanol for vehicles is the only solution to the crisis," Gadkari said.

According to ISMA president A Vellyan, during the 2014-15 sugar season, the contracts for ethanol supplies were finalised at 80 crore litres which were entered into during the whole season against four or five invitations by oil manufacturing companies (OMCs). During the current sugar season, for which supplies will have to be made between December 2015 and November 2016, the companies have issued only one invitation and the industry has offered 147 crore litres, against which the OMCs could finalise contracts for 104 crore litres.

"The increase is already by 24 crore litres over last year. As against the blending of around 2.5 to 3% last year, the blend is expected to touch 5% or more," Vellyan said.