Union Minister for Road Transport and Highways, Nitin Gadkari, delivered a strong defence of India’s ethanol-blending initiative, particularly the 20 per cent ethanol-blended petrol (E20) programme, which came into effect nationwide in April 2025, ahead of its planned schedule. Speaking at the Nirman Bharat event, Gadkari dismissed the growing criticism of the policy, describing it as nothing more than a “false and paid campaign” orchestrated by vested interests opposed to reducing India’s dependence on costly fossil fuel imports.
He categorically rejected allegations that the government had favoured select companies or created difficulties for consumers, and instead highlighted the wider benefits of the policy for farmers, the economy, and the environment. According to him, suggestions that ethanol blending reduces fuel mileage or damages vehicles are unfounded and misleading. He cited Brazil’s example, where nearly three decades of large-scale ethanol blending have been implemented without technical or mechanical issues for automobile companies ranging from Mercedes to Toyota.
The minister further emphasised that India’s E20 rollout offers significant economic and environmental gains. With oil imports costing the country more than ₹22 lakh crore annually, ethanol blending directly reduces this burden while also curbing urban air pollution. In addition, the policy generates new income streams for farmers by creating steady demand for crops like sugarcane and maize. Gadkari explained that farmers in states such as Uttar Pradesh and Bihar have already witnessed remarkable benefits. He pointed out that maize, which once sold below its Minimum Support Price at around ₹1,200 per quintal, is now fetching between ₹2,600 and ₹2,800 per quintal, following its inclusion in ethanol production. This price surge has boosted incomes, expanded maize acreage, and even enabled farmers to take three harvests a year, collectively adding nearly ₹45,000 crore to their earnings.
However, not all have been convinced. Opposition parties and consumer groups have raised concerns about mileage issues, possible long-term damage to older vehicles not designed for high ethanol content, and the lack of consumer choice after unblended petrol was largely phased out from retail stations. Additionally, critics have accused Gadkari of indirectly benefiting from the policy, alleging that sugar companies linked to his family profit disproportionately from ethanol production. In response, Gadkari outright rejected such allegations, clarifying that ethanol procurement prices are determined through transparent tenders conducted by the Petroleum Ministry and approved by the Cabinet. He also stressed that his family’s involvement in production is negligible, accounting for less than 0.5 per cent of total national output. He labelled the accusations as politically motivated and baseless.
Gadkari strongly argued that the ethanol programme represents much more than an energy strategy—it is also a rural development and environmental sustainability initiative. By supporting biofuels, India is not only reducing its foreign exchange outflow but also paving the way for cleaner cities and better livelihoods for its farmers. He framed the policy as central to the government’s larger vision of Atmanirbhar Bharat, or self-reliant India, where farmers are transformed into energy providers and the country reduces its vulnerability to fluctuating global oil markets. The minister added that ethanol is only one part of a broader alternative fuels strategy that also includes methanol, biodiesel, LNG, CNG, and hydrogen, all of which can contribute to reducing imports, generating employment, and fighting pollution.
In closing, Gadkari declared the ethanol mission to be his life’s work and pledged to remain steadfast despite what he termed “false propaganda.” He insisted that such policies are essential not only for safeguarding India’s economy but also for ensuring a cleaner, healthier environment and a prosperous rural sector. He reiterated that biofuels hold the potential to save billions in foreign exchange, create crores of new jobs, and make India a global leader in sustainable energy.
