
Worried about ethanol-blended petrol? Government says it's safe for your vehicles
According to the ministry, long-term testing of both carbureted and fuel-injected vehicles across 100,000 km showed 'no statistically significant differences' in power, torque, or fuel efficiency between E20 and conventional petrol. These tests were carried out every 10,000 km and evaluated not only engine performance but also emissions and mechanical durability.Further assessments by the Automotive Research Association of India (ARAI), Indian Institute of Petroleum (IIP), and Indian Oil Corporation's R&D wing confirmed that even older vehicles—or 'legacy vehicles'—did not suffer from abnormal wear and tear. E20 also passed hot and cold engine start tests without any sign of engine damage.ONLY MINOR DROP IN FUEL EFFICIENCYOne of the most frequently raised concerns around E20 is reduced mileage. Ethanol has a lower energy density than petrol, which does result in a minor drop in fuel economy. The ministry acknowledged this but clarified that the reduction is limited to around 1–2% for vehicles designed for E10 and calibrated for E20. In older or non-optimised vehicles, it could range from 3–6%.However, this drop is far from 'drastic,' the ministry noted, and can be mitigated with proper engine tuning and the use of E20-compatible materials—measures that leading automakers have already adopted since April 2023, according to the Society of Indian Automobile Manufacturers (SIAM).Concerns about E20 causing corrosion in vehicle components were also dismissed. The ministry explained that corrosion inhibitors are already part of the fuel's formulation, and safety specifications are clearly defined under BIS and Automotive Industry Standards. In older vehicles, some rubber components or gaskets may need replacement after 20,000 to 30,000 km—an inexpensive and routine maintenance activity.ENVIRONMENTAL BENEFITThe government reiterated that ethanol blending isn't just safe—it's also environmentally sustainable and economically strategic. Ethanol, being a biofuel, replaces fossil-based petrol and significantly cuts down CO2 emissions. A Niti Aayog study found that lifecycle emissions from sugarcane-based ethanol are 65% lower than petrol, while maize-based ethanol emits 50% less greenhouse gases.Ethanol is now being produced from diverse feedstocks including surplus rice, maize, damaged grains, and agri-residues, aligning with India's push for second-generation (2G) biofuels. This not only reduces environmental impact but also strengthens rural incomes.Since 2014-15, India has saved over Rs 1.40 lakh crore in foreign exchange by substituting petrol with ethanol. At the same time, the ethanol procurement programme has facilitated prompt payments of over Rs 1.20 lakh crore to farmers, generating jobs and demand in rural areas.advertisementE20, with its higher octane rating (~108.5 compared to petrol's 84.4), also supports the performance needs of modern high-compression engines. Ethanol's higher heat of vaporisation lowers the intake manifold temperature, improving engine efficiency and contributing to better ride quality.PLANNED TRANSITIONAddressing claims that the shift to E20 has been sudden or poorly communicated, the ministry pointed to the Roadmap for Ethanol Blending in India 2020–25, publicly available since 2021. The implementation has followed a phased, multi-stakeholder approach involving coordination with automakers, fuel companies, and regulatory agencies.The ministry made it clear: narratives suggesting that ethanol-blended petrol harms vehicles or short-changes consumers 'lack technical foundation.' Backed by research, standards, and a national roadmap, E20 is being positioned as a scientifically sound, environmentally responsible, and economically beneficial step toward energy independence. - Ends
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Economic Times
2 hours ago
- Economic Times
Stricter rules likely to curb substandard steel imports
Synopsis India is planning to tighten norms for steel imports under the advance authorisation scheme to curb the inflow of substandard, non-BIS compliant steel. The government is considering lowering the Export Obligation Period to six months and withdrawing QCO exemptions for domestic importers. These measures aim to prevent the diversion of duty-free steel into the domestic market, protecting local manufacturers. Reuters Steel mill (Image for representation) India plans to tighten the advance authorisation norms for steel imports, aiming to curb large-scale inflows of substandard inputs. According to officials aware of the development, instances of non-Bureau of Indian Standards (non-BIS) compliant steel being sold in the domestic market are being flagged. These substandard products are said to be imported duty free by export-oriented units under the advance authorisation."The imported steel, meant for export production is often sold in the domestic market, resulting in revenue loss for the government and putting domestic steel makers at a competitive disadvantage," the official told currently levies an interim 12% safeguard duty, and a 7.5% basic customs duty on steel imports. There is also a Quality Control Order (QCO) which bans the import and sale of non-BIS steel in the advance authorisation scheme allows exporters to import raw material at nil duty and without QCO regulations with an export mandate that needs to be met within 18 months."Eighteen months is too long, and traceability of non-BIS compliant steel is a matter of concern since it is making its way to the domestic market and not being used to make exported products," the official said. The centre is now said to be considering lowering the Export Obligation Period (EOP) of advance authorisations to six months in a bid to ensure the substandard steel is not tightening the Advance Authorisation regime, India is also planning to withdraw an exemption from the QCO granted to domestic importers under the scheme. This too is aimed at plugging misuse of the scheme, officials to Fitch Ratings, India is also expected to extend its 12% safeguard duty and even revise the duty rates upwards as industry conditions worsen globally. "Governments around the world have been raising barriers to steel imports in recent months," Fitch said while adding India has introduced other non-tariff measures to protect domestic producers in recent steel imports fell by 16% annually in the first half of this calendar year. "Barriers to steel imports should benefit domestic producers," Fitch added.


Time of India
2 hours ago
- Time of India
Stricter rules likely to curb substandard steel imports
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel India plans to tighten the advance authorisation norms for steel imports, aiming to curb large-scale inflows of substandard inputs. According to officials aware of the development, instances of non-Bureau of Indian Standards (non-BIS) compliant steel being sold in the domestic market are being flagged. These substandard products are said to be imported duty free by export-oriented units under the advance authorisation."The imported steel, meant for export production is often sold in the domestic market, resulting in revenue loss for the government and putting domestic steel makers at a competitive disadvantage," the official told currently levies an interim 12% safeguard duty, and a 7.5% basic customs duty on steel imports. There is also a Quality Control Order (QCO) which bans the import and sale of non-BIS steel in the advance authorisation scheme allows exporters to import raw material at nil duty and without QCO regulations with an export mandate that needs to be met within 18 months."Eighteen months is too long, and traceability of non-BIS compliant steel is a matter of concern since it is making its way to the domestic market and not being used to make exported products," the official centre is now said to be considering lowering the Export Obligation Period (EOP) of advance authorisations to six months in a bid to ensure the substandard steel is not tightening the Advance Authorisation regime, India is also planning to withdraw an exemption from the QCO granted to domestic importers under the scheme. This too is aimed at plugging misuse of the scheme, officials to Fitch Ratings, India is also expected to extend its 12% safeguard duty and even revise the duty rates upwards as industry conditions worsen globally. "Governments around the world have been raising barriers to steel imports in recent months," Fitch said while adding India has introduced other non-tariff measures to protect domestic producers in recent steel imports fell by 16% annually in the first half of this calendar year. "Barriers to steel imports should benefit domestic producers," Fitch added.
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Business Standard
3 hours ago
- Business Standard
US doubles tariff on India to 50% over Russian crude oil purchases
In a significant escalation of trade tensions, the Donald Trump administration on Wednesday imposed a further 25 per cent tariff on Indian exports to the United States (US), blaming New Delhi's continued purchases of Russian crude oil. The move brings the total tariff burden to 50 per cent, leaving India at a marked disadvantage compared to global competitors, including China, on virtually all merchandise exports to the US. The US had already announced a 25 per cent tariff on Indian imports, set to come into force from August 7. The additional 25 per cent duty will apply to shipments arriving after a 21-day window, from August 28 onwards. These tariffs are being levied on top of existing World Trade Organization-compatible duties. 'I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil,' Trump said in an executive order issued by the White House. The order states that India's continued oil trade with Russia undermines US national security and foreign policy interests, particularly in relation to the conflict in Ukraine. India has condemned the tariff hike, calling the US decision 'unfair, unjustified and unreasonable' and emphasising how the US in recent days 'targeted' India's oil imports from Russia. 'We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India,' the Ministry of External Affairs said. 'It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,' the MEA further said. The ministry added that India would take 'all actions necessary' to safeguard its national interests. Russia now supplies about one-third of India's total crude oil imports, making it New Delhi's largest energy partner. India is the world's second-largest buyer of Russian crude, after China. According to the New Delhi-based think tank Global Trade Research Initiative (GTRI), while India could consider curbing Russian oil imports if economically feasible, it should not give in to US pressure without due consideration. 'India should remain calm, avoid retaliation for at least six months, and recognise that meaningful trade negotiations with the US cannot proceed under threats or mistrust,' GTRI said, warning that the US may find new pretexts to penalise India again. Trump in his executive order stated that should 'a foreign country' retaliate against the United States in response to this action, he may further raise the tariffs. However, he indicated that the order could be modified should India or Russia take what he described as 'significant steps' towards aligning with the US on security, foreign policy, or economic matters. Earlier this month, Trump had warned of secondary tariffs of up to 100 per cent on countries continuing trade relations with Russia, unless Moscow agreed to a ceasefire in Ukraine. The Federation of Indian Export Organisations (FIEO) called the move a major setback for exporters, with nearly 55 per cent of India's shipments to the US directly affected. 'The 50 per cent reciprocal tariff effectively imposes a cost burden, placing our exporters at a 30–35 per cent competitive disadvantage compared to peers from countries with lesser reciprocal tariff,' said FIEO President S C Ralhan. He added that micro, small & medium enterprises-led sectors, in particular, may not be able to withstand the sudden cost surge. 'Margins are already thin, and this additional blow could force exporters to lose long-standing clients.' The latest measures come amid criticism from within the US political establishment. Republican leader Nikki Haley had earlier said: 'India should not be buying oil from Russia. But China, an adversary and the number one buyer of Russian and Iranian oil, got a 90-day tariff pause. Don't give China a pass and burn a relationship with a strong ally like India.' In May, the US government granted a 90-day pause on additional tariffs on China, a reprieve that is due to expire on August 12. GTRI pointed to the disparity, noting that Beijing continues to avoid penalties due to its control over critical materials such as gallium, germanium, rare earths, and graphite -- resources deemed vital to US defence and technology sectors. 'In 2024, China bought $62.6 billion of Russian oil, more than India's $52.7 billion, yet faces no such penalties,' it said.