The Indian Sugar and Bio-energy Manufacturers Association, known as ISMA, made a strong appeal to the central government on Wednesday. The association urged comprehensive GST rationalisation and targeted policy support across the biofuel and clean mobility ecosystem. This move aims to cut emissions, protect farmer livelihoods, reduce crude oil imports, and accelerate India's journey towards net zero.
ISMA Presents a 10-Point Blueprint for Transformation
ISMA presented a detailed 10-point blueprint to the government. The association proposed transforming the sugar sector into a multi-vertical bio-energy hub. This ambitious plan includes lowering the GST on flex-fuel vehicles, ethanol fuels, and related equipment. ISMA also called for aligning the tax treatment of hybrid electric vehicles with that of electric vehicles.
Immediate Carbon Reductions Possible
Deepak Ballani, the director general of ISMA, highlighted the potential benefits. He said these measures could deliver immediate carbon reductions. The plan uses existing ethanol supplies, production capacity, and vehicle technologies. This approach avoids waiting for new infrastructure, making it a practical solution.
Key GST Recommendations
ISMA's key recommendations focus on GST cuts to boost adoption. The association proposed cutting GST on FFV two-wheelers and small cars to 5%. This would achieve cost parity with petrol vehicles. Reducing GST on E85/E100 ethanol to 5% is also suggested. This ensures pump prices remain competitive with petrol. Lowering GST on ethanol-related equipment to 5% would support sectoral growth.
Financial Support for Advanced Biofuels
ISMA sought significant financial support to expand advanced biofuels. The association requested Rs 200 crore for projects like sustainable aviation fuel, bio-hydrogen, and isobutanol. This includes dedicated funds for technology validation. A Rs 2,000 crore fund is also proposed for converting sugar mills into integrated bio-energy hubs.
Policy Initiatives Ahead of Budget 2026–27
The association further called for several policy initiatives. These include a national sustainable aviation fuel policy with fiscal incentives. ISMA proposed the creation of a Bharat biofuels alliance. Viability gap funding for green hydrogen projects is also on the agenda. All these measures are aimed at the Union Budget 2026–27.
ISMA's comprehensive plan underscores the urgency of supporting the biofuel sector. The association believes these steps will not only cut emissions but also strengthen farmer livelihoods and reduce India's dependence on crude oil imports.
