Page 52 - Policy & Economic Report - July 2025

POLICY AND ECONOMIC
ROEILPO&RGTAS MARKET

Key Policy developments/Significant news in Energy sector

1. E20 a Clean, High-Performance Fuel; Moved Ahead Only After Rigorous Testing on Older Vehicles:
Industry Experts

The Ministry of Petroleum and Natural Gas along with the Ministry of Heavy Industries and the
Ministry of Road Transport and Highways organised a press conference in New Delhi, where leading
experts from the energy and automobile sectors addressed the media on the E20 ethanol-blended
petrol programme. It was highlighted that ethanol blending has been a measured, scientifically driven,
step-by-step process, and vehicle owners were reassured that E20 fuel poses no cause for concern.

The press conference was addressed by Ms. Vartika Shukla, Former Chairman and Managing Director,
Engineers India Limited (EIL); Shri Vikram Gulati, Country Head & Executive Vice President, Toyota
Kirloskar Motor (TKM); Shri Rahul Bharti, Senior Executive Officer, Corporate Affairs, Maruti Suzuki;
Shri Ashutosh Varma, Chief Business Officer, Hero MotoCorp; Shri Prasad Krishnan, Senior Vice
President, TVS Motor Company; Shri Puneet Anand, Associate Vice President, Hyundai Motor India;
and Shri Manpreet Singh Bindra, Circle Head – Sales (North & East), Urbanite Business, Bajaj Auto
Limited.

Shri Vikram Gulati, Country Head & Executive Vice President, Toyota Kirloskar Motor, said the
automotive industry is among the most strongly regulated sectors, with vehicles undergoing rigorous
testing and certification by independent, globally accredited agencies before and after market
introduction. He described ethanol as a high-performance, clean fuel, in use since the early 1900s and
even in Formula racing. He added that the decision to move to E20 was taken only after rigorous
testing on older vehicles, and clarified that the recently launched E85 dispensing stations are meant
exclusively for flex-fuel vehicles, marking the direction of future policy.

On questions regarding the independence of testing agencies, Shri Gulati clarified that testing
protocols are not set in India alone; India is party to UNECE, testing procedures are internationally
standardised, and testing agencies are accredited, globally compliant and also undertake testing for
exported vehicles. He stated that these protocols cannot be compromised.

Shri Rahul Bharti, Senior Executive Officer, Corporate Affairs, Maruti Suzuki, gave a "statement of
confidence" to customers, stating that vehicles designed for E10 have been tested with E20 fuel across
all parameters, with no areas of concern. He informed that of the 2.84 crore cars serviced by Maruti
Suzuki in FY 2025-26, more than 1.5 crore were over three years old and hence not E20-certified, and
no E20-related issues of corrosion, wear and tear or damage to component life were reported from
the field.

On mileage, Shri Bharti stated that the calorific value of E20 is lower than that of E10 by about 3 to
3.5 per cent, and the mileage impact is limited to this extent. Illustrating, he said that for a car giving

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