New Delhi, Oct. 29 -- The Supreme Court on Thursday questioned the Centre over how it would ensure adequate ethanol supplies if vehicles capable of running entirely on ethanol are permitted, raising concerns about production capacity, environmental considerations and the interests of farmers.
A bench of Justices M M Sundresh and Prasanna B Varale raised the issue while hearing petitions concerning ethanol allocation for the Ethanol Supply Year (ESY) 2025-26. Referring to recent media reports, the bench asked the government to explain how the supply requirements of vehicles running on 100 per cent ethanol would be met.
"Academically, we want to know if the permission is given to have 100 percent ethanol run vehicles, how will you make the supply," the bench asked.
Attorney General R Venkataramani told the court that accommodating such vehicles would require "large scale manufacturing re-arrangements".
The query follows an October 26 notification by the Ministry of Road Transport and Highways amending the Central Motor Vehicles Rules, 1989, to permit flex-fuel vehicles capable of running on blends containing up to E100, or nearly pure ethanol. The amendments also update emission certification provisions to expressly include E100 alongside E85, which contains 85 per cent ethanol and 15 per cent petrol.
However, Petroleum and Natural Gas Minister Hardeep Singh Puri said on October 27 that the Centre had no immediate plans to raise ethanol blending in petrol beyond the existing 20 per cent. During Thursday's hearing, the bench also called for greater attention to farmers' welfare, saying the policy needed to be assessed in terms of public interest and its environmental implications.
Justice Sundresh said empowering farmers, particularly those living in villages, was an important consideration in the debate. "We need to empower the common man which is still in the villages," the bench observed.
Venkataramani said he would address the concerns relating to farmers during his submissions. One lawyer argued that promoting ethanol could benefit farmers, while another said the Centre's existing policy already took their interests into account.
The court adjourned the matter to next month.
The proceedings relate to a dispute over ethanol allocation for ESY 2025-26. On June 30, the Supreme Court ordered status quo on a Karnataka High Court direction concerning an increase in allocation for the period.
An oil marketing company had challenged the high court's order, arguing that it could destabilise the national policy of blending 20 per cent ethanol with petrol.
The high court had directed Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and Indian Oil Corporation Limited to consider a representation from a dedicated ethanol manufacturer seeking higher allocation. It had observed that plants established under government policy and contractually committed to supplying ethanol exclusively to oil marketing companies could not be denied preferential allocation envisaged under long-term offtake agreements.
Published by HT Digital Content Services with permission from Millennium Post.