New Delhi, Feb. 9 -- India's distillery industry has urged the government to cut goods and services tax (GST) on flex-fuel vehicles to boost ethanol consumption, as the country faces a surplus of ethanol after achieving its 20% blending target well ahead of schedule, Bharati Balaji, Director of the All India Distillers' Association (AIDA), said on Monday.

"Flex-fuel vehicles are significantly more expensive to produce compared with conventional internal combustion engine vehicles, and unless GST is rationalised it will be difficult for manufacturers to scale them up," Bharati Balaji, Director of the All India Distillers Association (AIDA), told ANI on the sidelines of a roundtable on ethanol-diesel and isobutanol blending.

Balaji said A...