New Delhi: The government is looking to speed up the rollout of flexible-fuel vehicles (FFVs) as global energy concerns rise due to the ongoing West Asia conflict, The Economic Times reported.
At a recent meeting convened by the petroleum ministry, automobile manufacturers said that while they are ready with FFV models, key issues such as fuel costs and consumer acceptance need to be addressed for wider adoption.
Sources said original equipment manufacturers highlighted that vehicles running on ethanol tend to give lower mileage-around 27% to 30% less than petrol-making it important to ensure that users do not face higher running costs.
Officials noted that several major car and two-wheeler companies already have prototype FFVs ready, but the focus now is on building the necessary infrastructure, including fuel stations that can supply ethanol.
The government has pointed out that blending 20% ethanol in petrol has helped India reduce crude oil imports by about 4.5 crore barrels annually. However, industry experts believe FFVs could be a better long-term option compared to increasing ethanol blending further, as higher blends may affect the performance of existing vehicles.
During the discussions, manufacturers also sought a clear roadmap for ethanol availability, along with possible compensation or pricing support to offset the lower mileage.
Earlier, Petroleum Minister Hardeep Singh Puri had written to Finance Minister Nirmala Sitharaman, seeking a reduction in GST on FFVs to bring it in line with electric vehicles.
At present, FFVs attract 28% GST, compared to 5% for electric vehicles, a gap that industry players say needs to be addressed to encourage adoption.
