New Delhi, June 9 -- India's ambitious plan to scale up ethanol blending in petrol to 20 per cent (E20) by 2025 is facing growing headwinds, as stakeholders raise concerns over costs, infrastructure, and vehicle compatibility.

The Indian Sugar Mills Association (ISMA) has called for a significant price hike in procurement of cane-based ethanol-from the current Rs 65.61/litre to Rs 69.85/litre-asserting that this adjustment is critical to attract investment.

According to ISMA, achieving the 20 per cent blending target will demand an additional 800 crore litres, requiring around Rs 17,500 crore in distillery capacity expansion.

Automobile manufacturers, meanwhile, have urged government support for the transition to higher ethanol blends....