Union Minister Nitin Gadkari has rejected concerns that petrol blended with ethanol could damage vehicles, asking critics to provide evidence of vehicles being affected by the fuel.
Speaking at the Bihar
Investor Summit 2026, Gadkari defended the government’s ethanol-blending programme, saying it was intended to reduce India’s dependence on conventional fuels while creating an additional market for agricultural produce.
Gadkari cites vehicle usage and testing
Gadkari said about four crore four-wheelers and 20 crore two-wheelers had been operating on ethanol-blended petrol since 2022. He also said major automobile manufacturers had tested vehicles using higher ethanol blends, including vehicles capable of running entirely on ethanol.
The minister argued that concerns over ethanol blending were also linked to the interests of businesses dependent on conventional fuel imports. He said India currently imports conventional fuel worth about ₹22 lakh crore.
Gadkari said the government’s policy should be viewed beyond its impact on the transport sector, particularly because ethanol production has created another avenue for farmers to earn from their agricultural output.
Ethanol seen as additional farm income source
According to Gadkari, the use of corn to produce ethanol has generated additional earnings of up to ₹45,000 crore for farmers in Bihar and Uttar Pradesh.
He described the programme as part of a broader effort to diversify agriculture towards the energy and power sectors. Under this approach, farmers could become producers of both food and energy, he said.
Gadkari also pointed to other efforts to develop alternative fuels using agricultural resources. He said aviation fuel had been produced using rice straw, highlighting the potential of farm waste as an energy source.
The minister said innovation, technology and research would be important to expanding alternative fuels, adding that Bihar could play a significant role in this area.
The government has promoted ethanol blending as part of efforts to reduce reliance on imported fossil fuels and expand domestic sources of energy.
Gadkari said the programme could simultaneously create new markets for agricultural products and additional economic opportunities for farmers.
