Toyota Exec Vikram Gulati: E20 Is Safe, Ethanol Key for Energy and Farmers

E20 is safe, ethanol program key to energy security and farmer income, says Toyota's Vikram Gulati

New Delhi, July 4

Speaking in an exclusive conversation with ANI, Gulati said the focus now should be on clearing consumer misconceptions and scaling ethanol as a carbon-neutral fuel. "E20 is the standard fuel that will be available and it is compatible with old vehicles and new vehicles," he said, adding that all vehicles sold after 1st April 2023 are fully materially compliant with E20. He also clarified that higher blends like E85 and E100 are not meant for regular cars and will require flex-fuel vehicle technology.

Gulati traced the origins of the ethanol program to India's structural energy deficit. "India has always been energy deficient. We import huge amounts of crude, which has a very negative impact on our economy. It also has a negative impact on the environment and also we are susceptible to any disruption in supply," he said, citing the recent crisis triggered by the West Asia situation as an example.

He said the program picked up momentum after 2018 when the government linked it to solving farm distress. "Farmers will produce sugarcane, farmers will produce rice... when you produce this in excess, it's going waste," he noted. Rather than spending taxpayer money to export surplus sugar, the government chose to promote ethanol from molasses and excess foodgrains. The impact, he said, has been significant. "The program so far has helped save 1.9 trillion rupees. Off that, 1,60,000 crores has gone to farmers." Gulati added that farmer incomes have gone up across states including Bihar and Uttar Pradesh, and in areas where sugarcane is grown widely.

On environmental benefits, Gulati called ethanol "the best fuel if you want to fight climate change" because it is carbon neutral. "Carbon dioxide is absorbed by plants when they grow. And when you make this into fuel and burn it, the carbon dioxide that comes out is actually absorbed back by the plants."

Addressing myths around ethanol-blended petrol, Gulati said there is widespread misunderstanding. He said the idea that E20 will damage vehicles is false. Citing a 2021 study by ARAI, India's leading automobile testing agency, he said it "clearly established that the possible damage to cars and two wheelers which are old is not there. It is very insignificant." On mileage, he acknowledged there is some loss but "it is not so big as it being made out to be," pegging it at 2-4%. He also dismissed concerns about pollution from ethanol plants, saying all Indian plants require environment clearances, operate as zero-effluent units, and reuse by-products like bagasse, making them "extremely clean in terms of their processes."

— ANI