Ethanol blending programme safe, use of E20 won't affect vehicle insurance validity: Govt

India's ethanol blending programme remains safe, consumer-friendly, and economically beneficial, the government said, dismissing concerns that the use of E20 fuel could affect the validity of vehicle insurance policies.

The oil ministry in a statement said claims linking E20 fuel use to insurance invalidation had been clarified with relevant stakeholders and were found to be incorrect.

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"Ethanol blending is a globally accepted practice and is successfully implemented in several countries, including the United States, Brazil, and Japan," it said.


It noted that Brazil has long adopted higher ethanol blending levels, with E27 serving as the country's standard petrol blend.

The government said the ethanol blending programme has helped India save more than Rs 1.4 lakh crore in foreign exchange by reducing crude oil imports. It added that the programme has created sustained demand for agricultural feedstocks used in ethanol production, supporting farmers' incomes and strengthening rural economy.

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"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 said it remains committed to implementing the programme "in a safe, transparent and consumer-centric manner, guided by scientific evidence and continuous stakeholder engagement."