Flex-fuel vehicles are critical for reshaping India’s energy security: AIDA

Having over 43 years of experience in the sugar and ethanol industry, Vijendra Singh has managed sugar & ethanol businesses in the states of Uttar Pradesh, Karnataka, and Maharashtra in India, as well as in Brazil. He currently serves as the President of the All-India Distillers’ Association (AIDA) — the apex national body representing the distillery and ethanol industry in India — and is also the Executive Director & Deputy Chief Executive Officer of Shree Renuka Sugars Limited, one of India’s prominent integrated sugar and bioenergy companies.

Singh was elected President of AIDA at the Annual General Meeting held on 8 August 2025. In his role, he represents the distillery and ethanol sector on policy, regulatory, sustainability, and industry-development platforms.

In a conversation with The Pioneer, he gives his perspective on Flex-Fuel Vehicles (FFVs) — Strategic Imperative for India’s Energy Security. Excerpts:

• India imports over 80% of its crude oil. In your view, how critical are Flex-Fuel Vehicles (FFVs) in reshaping India’s long-term energy security strategy?

Ans - Flex-Fuel Vehicles (FFVs) are highly critical for reshaping India’s energy security by shifting the nation’s transport dependency from imported fossil fuels to domestic agricultural resources.

The following points outline their importance:

Direct Reduction of Import Dependency India’s extreme dependence on crude oil imports can be mitigated because ethanol raw materials are entirely grown by Indian farmers. While current E20 blending (20% ethanol) is a major step, going beyond this threshold is “very difficult” without the rapid rollout of FFVs and Ethanol Hybrids. By enabling vehicles to run on much higher percentages of ethanol (up to E100), India can utilize its “net realistic capacity” of 1,450 crore litres of ethanol. This internal supply helps insulate the economy from global oil price volatility and reduces the massive foreign exchange outflow required for 80%+ crude imports.

Economic and Agricultural Stability The critical role of FFVs extends to India’s internal economic security by providing a stable market for surplus agricultural produce. With current maize production at 35 million tons, increasing the yield to 5 tons per hectare (closer to the world average of 6 tons) would provide an additional 15 million tons of maize. This surplus alone could generate 562 crore litres of additional ethanol. By creating a “Farm-to-Fuel” pipeline, FFVs ensure that national energy expenditures are redirected into the pockets of Indian farmers rather than foreign oil producers.

Environmental and Health Security Energy security strategy also encompasses long-term health of population. Ethanol is a high-octane fuel (109 RON) that acts as natural oxygenate, helping petrol burn more efficiently. This allows for replacement of harmful, cancer-causing synthetic aromatics like benzene, toluene.

• With increasing geopolitical disruptions affecting oil supply chains, do you see FFVs as a strategic hedge against global volatility, or merely a transitional solution?

Ans - FFVs serve as a critical strategic hedge by decoupling the transport sector from volatile global energy markets. Currently, India faces extreme vulnerability due to its heavy reliance on crude oil imports, which are often subject to geopolitical tensions and maritime supply chain disruptions. By shifting the fuel base to ethanol-a resource grown entirely by domestic farmers-FFVs ensure that national energy security is maintained regardless of international conflicts. This transition transforms energy from a geo-strategic liability into a manageable domestic commodity.

• How does AIDA position FFVs within India’s broader clean mobility roadmap alongside EVs, hydrogen, and CNG?

Ans - AIDA positions FFVs as a frontline defense against “disturbances in the Gulf region” and the resulting energy supply chain disruptions. FFVs are ready for “large-scale rollout” because several Original Equipment Manufacturers (OEMs) already have market-ready prototypes. This makes FFVs a primary tool for “proportionately reducing dependence on fuel imports” during critical periods of global volatility.

Bridge to High-Blend and Pure Ethanol Usage The roadmap identifies a need to move beyond the current E20 limit, with AIDA recommending a phased increase to 30% blending. FFVs are positioned as the essential vehicle technology to facilitate this transition, as standard engines cannot handle these higher concentrations. By enabling vehicles to run on everything from E20 to E100 (pure ethanol), FFVs unlock the “full potential of ethanol” as a strategic pillar for India’s energy transition.

Synergy with Rural and Industrial Economy Unlike mobility solutions that rely on imported minerals or complex new gases, FFVs are positioned as part of a “unique model” where national energy goals converge with the rural economy. The roadmap sees FFVs working in tandem with other ethanol applications-such as ethanol for cooking fuel in hospitals and industrial kitchens or future blending in diesel-to create a comprehensive bioenergy ecosystem. This ensures that energy expenditures directly support Indian agricultural resources and industrial capability.

• How prepared are Indian automotive manufacturers to scale FFV production at a mass level?

Ans - Indian automotive manufacturers are technically prepared for a mass-level transition. As stated in AIDA’s letter to the Ministry, several Original Equipment Manufacturers (OEMs) are already equipped with “market-ready prototypes” for Flex-Fuel Vehicles. This indicates that the core engineering, including ethanol-compatible fuel systems and engine calibrations, has already been developed and tested for the Indian market.

The readiness is particularly visible in the two-wheeler and passenger car segments. Major companies like Toyota, Suzuki, and TVS are actively developing and showcasing FFVs designed to run on higher ethanol blends (up to E85 or E100), aiming to reduce reliance on imported oil and lower emissions. These manufacturers are capable of scaling up production rapidly, as the transition leverages existing internal combustion engine (ICE) production lines, requiring only specific component upgrades rather than a complete overhaul of manufacturing infrastructure.

Despite being technically ready, mass scaling is currently hindered by economic barriers. Manufacturers are hesitant to move into high-volume production because FFVs currently face a high GST rate of 28% to 48%. Without “policy support, incentives, and tax concessions” to make these vehicles affordable for the public, manufacturers cannot justify the investment required for full-scale commercial rollout.