The government on Tuesday said India’s ethanol blending programme is safe for consumers and economically beneficial, rejecting concerns that the use of E20 petrol could affect vehicle insurance claims.
The Ministry of Petroleum and Natural Gas said claims suggesting that vehicles using E20 fuel would lose insurance coverage had been examined with concerned stakeholders and found to be incorrect.
"Ethanol blending is a globally accepted practice and is successfully implemented in several countries, including the United States, Brazil, and Japan," the ministry said.
It pointed out that Brazil has been using higher ethanol blends for years, with E27 being the standard petrol blend in the country.
The government said the ethanol blending programme has helped India save over Rs 1.4 lakh crore in foreign exchange by reducing dependence on crude oil imports.
The initiative has also generated steady demand for agricultural feedstocks used in ethanol production, helping farmers and supporting the rural economy, it added.
"Ethanol blending plays an important role in enhancing India's energy security, reducing carbon emissions and advancing the country's transition towards cleaner mobility," the statement said.
The government reiterated that the programme would continue to be implemented "in a safe, transparent and consumer-centric manner, guided by scientific evidence and continuous stakeholder engagement."
(With PTI inputs)
