NEW DELHI: India will soon allow automakers to manufacture vehicles running entirely on ethanol, Transport Minister Nitin Gadkari said on Wednesday, even as the country is struggling to source the sugarcane by-product for 10 percent-blending with gasoline.

Ethanol is a cleaner option as far as emissions are concerned compared with gasoline.

"I've told my officials to expedite work on this so that I can announce this before January 26. These vehicles can run entirely on ethanol but will also have an option of flex-fuel," Gadkari told a conference of sugar producers.

He said India can take a leaf out of Brazil's book, as flexible-engine vehicles are very popular in the Latin American country.