To enable India to cope with the predictable and challenging situation of a scarcity of petroleum fuels for surface transport in the future, we examine and evaluate in this study potential alternatives that can ensure adequate energy for the transport sector with acceptable environment implications. These alternatives can be broadly categorized into three groups from the perspective of planning a smooth transition from a conventional petroleum fuel-based transport system to sustainable energy alternatives. The first group includes non-conventional fossil-based resources such as compressed natural gas (CNG), liquefied petroleum gas (LPG), methane from coal beds and gas hydrates, shale oil, shale gas, etc. Use of these resources could provide energy security but cannot guarantee environmental benefits. The second group includes first generation biofuels (alcohol and biodiesel), and biomass-to-liquid (BTL) fuels. These fuels are renewable but their current production methods and base feedstock do not appear promising enough to provide for a large-scale supply of fuel in a sustainable manner. The third group includes second generation biofuels and hydrogen. The feasibility of large-scale hydrogen production from renewable resources holds promise for scalable implementation and sustainability in the future but this would require huge technological challenges to be overcome. This study describes the potential of this proposed fuel resource scenario for transport fuels and discusses the technological challenges that would have to be addressed for its large-scale implementation.