NITI Aayog has reaffirmed its support for a broader mix of clean fuel technologies, backing biofuels as part of India’s path to net zero emissions by 2070, despite objections from leading automobile manufacturers, The Hindu businessline reported.
Companies including Tata Motors, Mahindra & Mahindra and JSW MG Motor had urged the government think tank to classify only electric vehicles as zero-emission vehicles (ZEVs). They opposed the inclusion of other technologies such as hybrids and ethanol-based vehicles, arguing that ZEVs should strictly refer to vehicles with no tailpipe emissions.
However, NITI Aayog has rejected these requests and maintained its broader definition of ZEVs. In its February 2026 transport report, the think tank included ethanol-based flex fuel vehicles (FFVs), compressed biogas (CBG) vehicles, hybrids, battery electric vehicles (BEVs), and hydrogen-powered vehicles under the ZEV category.
According to sources, the agency has advised that the adoption of all these technologies should remain a key part of India’s long-term strategy. It has also recommended a phased approach to the transition, beginning with reducing the use of diesel vehicles and gradually shifting to cleaner options such as CNG, hybrids, and electric vehicles.
In the next stage, the plan calls for a greater role for biofuels, including FFVs and CBG, alongside continued expansion of electric mobility. The final phase would see wider deployment of all zero-emission technologies, including EVs, biofuel-based vehicles, hydrogen-powered models, and CBG vehicles.
The move has received support from Indian Federation of Green Energy, which praised NITI Aayog for maintaining what it described as a balanced and practical approach. In a letter to Vice-Chairman Suman Bery, IFGE said the think tank had resisted pressure from industry groups and stayed committed to a strategy that includes biofuels and multiple technologies.
The federation, represented by Director General Sanjay Ganjoo, also welcomed the clarification that ZEV classification should be based on emissions across the full lifecycle of a vehicle, rather than only what is emitted from the exhaust.
IFGE, which represents companies across India’s bioenergy and renewable sectors, including NTPC, GAIL and Shree Renuka Sugars, said this approach would help ensure more accurate and practical policymaking.
The development signals the government’s continued focus on a mix of technologies, rather than relying solely on electric vehicles, as India works toward its long-term climate goals.
