“Academically, we want to know if the permission is given to have 100 percent ethanol run vehicles, how will you make the supply,” it asked.
Responding to the court’s query, Attorney General R Venkataramani said, “That will require large scale manufacturing re-arrangements.”
The Supreme Court on Thursday questioned the government on how it would ensure adequate ethanol supply if vehicles that run on 100 per cent ethanol are permitted, following recent amendments to vehicle rules that allow flex-fuel vehicles to operate on nearly pure ethanol.
On October 26, the Ministry of Road Transport and Highways notified amendments to the Central Motor Vehicles Rules, 1989, allowing flex-fuel vehicles that can run on up to E100, or nearly pure ethanol.
However, Petroleum and Natural Gas Minister Hardeep Singh Puri said on October 27 that the Centre had no immediate plan to increase ethanol blending in petrol beyond the current 20 per cent.
While hearing pleas concerning ethanol allocation for Ethanol Supply Year (ESY) 2025-26, a bench of Justices M M Sundresh and Prasanna B Varale referred to recent media reports on the issue.
“Day before yesterday, we saw some newspaper reports wherein it is stated that 100 per cent ethanol driven vehicles are permitted,” the bench said.
“Academically, we want to know if the permission is given to have 100 percent ethanol run vehicles, how will you make the supply,” it asked.
Responding to the court’s query, Attorney General R Venkataramani said, “That will require large scale manufacturing re-arrangements.”
During the hearing, the bench emphasised the need to consider the broader public interest, environmental concerns and the welfare of farmers while examining the ethanol policy.
“And, the third, I think I would put is much important from the point of view of the larger populace of the country which is the farmers. We have to address the third issue which is how to empower the farmers. This is one aspect which nobody is highlighting,” Justice Sundresh observed.
Venkataramani said he would address the issue concerning farmers during his arguments in the matter.
The bench also stressed the need to support people in rural areas, saying, “We need to empower the common man which is still in the villages.”
One of the advocates appearing in the matter said ethanol promotion would help farmers in some form or the other.
Another counsel argued that the central government’s policy had already taken some of these concerns into account.
“The central government policy takes into account the aspect of interest of farmers also,” the lawyer said.
The bench posted the matter for hearing next month.
Flex-fuel vehicles are designed to run on higher ethanol blends, including E85, which contains 85 per cent ethanol and 15 per cent petrol, and E100, which uses nearly pure ethanol.
Conventional petrol vehicles are currently approved for lower ethanol concentrations.
The Ministry of Road Transport and Highways recently said the amendments update emission certification provisions by expressly including E100 alongside E85.
The case concerns ethanol allocation for ESY 2025-26. On June 30, the Supreme Court ordered status quo on a Karnataka High Court direction to enhance ethanol allocation for the period.
The apex court was hearing a plea filed by an oil marketing company, which argued that the high court’s order would destabilise the national policy of 20 per cent ethanol blending in petrol.
The Karnataka High Court had directed Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and Indian Oil Corporation Limited to consider and decide a representation by a dedicated ethanol manufacturer seeking enhanced ethanol allocation for ESY 2025-26.
The high court had held that dedicated ethanol plants established under government policy and contractually bound to supply ethanol exclusively to oil marketing companies could not be denied the benefit of preferential allocation envisaged under long-term offtake agreements.