Union Minister Nitin Gadkari robustly defended India’s 20 per cent ethanol-blended petrol (E20) programme, dismissing criticism that it favours select companies or harms vehicle performance. Gadkari termed the allegations “false and paid campaign” propagated by vested interests resisting India’s move to curb fossil fuel imports.
“This talk that ethanol reduces mileage is wrong. It is false propaganda. In Brazil, since 1953, 27 per cent ethanol has been mixed in petrol and cars from Mercedes to Toyota run without any problem,” Gadkari said.
India achieved a nationwide rollout of E20 fuel in April 2025, ahead of schedule. The government maintains that the policy offers multiple benefits: cutting the oil import bill of over Rs 22 lakh crore, reducing urban air pollution, and bolstering farmers’ earnings through increased demand for crops such as sugarcane and maize.
Critics, however, have raised concerns that higher ethanol content could lower mileage and damage older vehicles not designed for it. Questions have also been raised about the alleged advantage to sugar companies linked to Gadkari’s family and the phasing out of unblended petrol at many outlets.
Gadkari firmly rejected such charges. “The government has not favoured anyone. Ethanol prices are fixed through tenders by the Petroleum Ministry and approved by the Cabinet. My family’s share is less than 0.5 per cent of total production. These allegations are baseless and politically motivated,” he said.
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Highlighting the policy’s impact on rural prosperity, Gadkari pointed out that inclusion of maize in ethanol production significantly benefited farmers in Uttar Pradesh and Bihar. “Farmers received about Rs 45,000 crore more in their pockets. When the MSP of maize was Rs 1,800 per quintal, the market price was only Rs 1,200. After the ethanol decision, maize now sells at Rs 2,600 to Rs 2,800. Farmers are taking three crops a year, maize acreage has tripled, and incomes have gone up,” he said.
Opposition parties, including Congress and several regional groups, have demanded continued availability of non-blended petrol for older vehicles and independent studies on E20’s long-term effects. Some leaders have accused the government of rushing the rollout to benefit certain industries.
Gadkari highlighted that ethanol blending is a key step towards energy security, environmental protection, and rural economic growth. “Do we not want to reduce imports worth Rs 22 lakh crore? Do we not want to cut pollution that shortens lives in Delhi and other cities? Do we not want farmers to become energy and fuel providers? This is about Atmanirbhar Bharat,” he said.
He further stressed that biofuels such as ethanol, methanol, biodiesel, LNG, CNG and hydrogen are central to India’s strategy for reducing imports and generating employment. “This is my life’s mission. I am not afraid of false allegations. I will keep talking about alternative fuels because they will save foreign exchange, make farmers prosperous, reduce pollution, and create crores of jobs,” Gadkari declared.
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