The government is planning to announce a policy in January to permit automakers to manufacture vehicles that can run on both ethanol and petrol, transport minister Nitin Gadkari said on Wednesday.

“We are working on a policy on flexi-fuel vehicles. These vehicles can run entirely on ethanol, but also have the option of petrol. I will make this announcement before January 26,” Gadkari said at the annual general meeting of the Indian Sugar Mills Association (ISMA). The minister has asked Volkswagen to make flexi-fuel vehicles for India, sources said.

Gadkari said countries like the US and Brazil already have such a policy in place and that the policy will not only trim dependence on crude oil imports, but help address the issue of pollution. However, he asked the sugar industry, which produces ethanol, to ramp up output so that the growing need for the bio-fuel is taken care of once the flexi-fuel vehicles start to roll. “I have told automobile makers that it will be good if they come on board with us on the issue. Even if they don’t, we will make efforts to bring them on board. This will happen for sure,” the minister said.

In a first, ethanol blending to touch 5%

Over a decade after the government first mooted the blending of ethanol with petrol in a 5:95 ratio and endorsed it at various stages to cut pollution, the country is finally set to achieve it in the current marketing year that started on October 1. “This is a big achievement for the industry and the country,” newly-elected ISMA president Tarun Sawhney said.