Page 53 - Policy & Economic Report - July 2025

July 2026 POLICY AND ECONOMIC
ROEILPO&RGTAS MARKET

20 km per litre, the impact works out to roughly 0.6 km per litre, whereas factors such as tyre pressure,
driving pattern, correct gear usage, acceleration, braking and maintenance cause far greater variation
in mileage. This loss in mileage is more than compensated by better acceleration, better anti knocking
and far lesser pollution in case of ethanol against pure petrol.

He clarified that vehicles are designed with factors of safety well beyond E20 compliance, and that no
retrofitment kit is being offered in the market, with such solutions confined to R&D at present.

Ms. Vartika Shukla, Former Chairman and Managing Director, Engineers India Limited (EIL), said that
the ethanol blending programme was structured through deliberation with all stakeholders and is
supported by scientific evidence and extensive testing by automotive manufacturers, in line with
global best practices. She noted that E20 fuel conforms to the BIS standard and BS-VI emission norms
and is uniformly available across retail outlets in the country. She added that several countries have
used ethanol blends for many years.

Shri Ashutosh Varma, Chief Business Officer, Hero MotoCorp, said that as one of the world's largest
two-wheeler manufacturers, the company has analysed extensive service data and found no incidence
of higher damage in vehicles running on E20 compared to earlier fuels.

The panel concluded by reaffirming the industry's collective confidence in the E20 programme and its
commitment to addressing consumer queries with transparency.

2. Spudding of first appraisal well, MN-DWN18-1-HD, begins in Mahanadi offshore basin

Union Minister for Petroleum and Natural Gas, Shri Hardeep Singh Puri, marked the commencement
of drilling of the first appraisal well, MN-DWN18-1-HD, in the Mahanadi Offshore Basin. Describing
the occasion as "the beginning of a new chapter in India's journey towards energy security", the
Minister said the commencement of drilling reflects the outcome of a decade of visionary reforms
that have transformed India's exploration and production landscape.

The MN-DWN18-1-HD appraisal well being spudded in the Mahanadi Offshore Basin is the first of four
planned deepwater wells that will systematically evaluate one of India's most prospective offshore
basins. The drilling programme will employ world-class deepwater drilling technology to unlock new
hydrocarbon resources and strengthen India's domestic production capability.

The Minister said that over the past decade, the Government has fundamentally transformed the
exploration and production ecosystem through landmark policy and regulatory reforms.

He highlighted the introduction of the Hydrocarbon Exploration and Licensing Policy (HELP),
replacement of the nomination-based approach with the Open Acreage Licensing Programme (OALP),
adoption of a transparent Revenue Sharing framework and the opening of nearly 99% of the erstwhile
offshore "No-Go" areas for exploration. He noted that nearly 81% of India's active exploration acreage

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