"A Niti Aayog expert committee has prepared a draft cabinet note on methanol blending of petrol and is going to send it to the Transport Ministry for their comments. The Aayog has suggested 3 per cent methanol blending in petrol," a senior government official told PTI.
"Countries like China are using methanol blended fuel successfully," the official added.
He said methanol can be a good replacement for petrol.
Last year, V K Saraswat, member, Niti Aayog, and also chairman of Methanol Committee had said the methanol economy promises to help India mitigate its petroleum import costs and at the same time, counters problems associated with global warming.
According to latest estimate, methanol production could cut India's huge crude oil imports bill, which is pegged at Rs 6 lakh crore per annum.
Methanol is a clear and colourless liquid produced from natural gas, coal and wide range of renewable feedstocks. Also known as 'wood alcohol', methanol is naturally occurring and biodegradable.
India has already introduced blending of petrol with ethanol.
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