BT India@100: Ethanol blending reduces vehicle average but causes no damage, says Union Minister Nitin Gadkari

Ethanol blending of 20 per cent with petrol does reduce the average of vehicles, but it doesn’t damage them and the fear campaign around E20 is by the petroleum lobby, said Union Minister of Road, Transport and Highways Nitin Gadkari.

Speaking at the Business Today India@100 event, Gadkari said that countries like Brazil have 100 per cent ethanol blending, while India has started trials for 27 per cent ethanol blending, but there is no timeline decided for its implementation.

“The petroleum lobby is manipulating it (fear campaign against the E20). It is true that E20 reduces the average mileage of vehicles, but don’t we want to reduce the Rs 22 lakh crore fuel import bill and cut down on pollution caused by fossil fuel,” said Gadkari.  There has been growing concern over social media over E20 rolled out by government is damaging the vehicle while there is no reduction in cost of fuel.   

He further said that Pune-based Automotive Research Association of India (ARAI) does trials and comes up with reports, before the government takes a call on ethanol blending.

“We have surplus rice, corn and wheat, which is used for ethanol production. The price of corn has gone up to Rs 2,600 quintal from Rs 1200 quintal due to demand for ethanol,” he said.   

On the future roadmap for the highways sector as India marches towards a developed economy by 2047, Gadkari said that the annual highways construction target for FY26 is 38km per day, while future planning is to touch 100 km/day.   

“Highways projects worth Rs 2.5 lakh crore have been awarded so far and we hope it touches Rs 10 lakh crore by the end of this fiscal,” the minister said, adding that the sector will play a key role in the country’s development.  

On the challenge posed by China’s rare earth curbs, the minister said that the government is working to expedite domestic lithium mining. “The mining sector has a lot of opportunities and ease of doing business options, with like all environment clearances completed in six months can expedite it,” he added.