New Delhi: The Indian Sugar and Bio-energy Manufacturers Association (ISMA) has urged the government to undertake comprehensive GST rationalisation and provide targeted policy support for biofuels and clean mobility in the Union Budget 2026–27, citing benefits for clean air, farmer incomes and energy security.
In a 10-point submission, ISMA proposed lowering GST on flex-fuel vehicles, strong hybrid electric vehicles and ethanol cookstoves to 5%, aligning them with electric vehicles to accelerate adoption. It also called for reduced GST on hydrous ethanol (E85/E100) and ethanol production machinery to make biofuels more competitive.
ISMA pitched the transformation of sugar mills into integrated “bio-energy hubs” producing ethanol, compressed biogas (CBG), sustainable aviation fuel (SAF), green bio-hydrogen and electricity, backed by dedicated government support funds.
“The upcoming Budget is a defining opportunity to align fiscal policy with India’s clean energy goals and place farmers at the centre of the energy transition,” said ISMA Director General Deepak Ballani.
The association also sought support for isobutanol trials, a national SAF policy, incentives for green bio-hydrogen and CBG, and the launch of a Bharat Biofuels Alliance to strengthen India’s biofuel ecosystem.
