Union Road Transport and Highways Minister Nitin Gadkari on Wednesday strongly defended the Centre’s ethanol blending programme, rejecting allegations of conflict of interest and asserting that he had no significant financial stake in the policy.
Gadkari denied allegations that he personally benefited from the ethanol program, saying his family’s sugar business existed long before the policy was implemented.
“I gain nothing from the ethanol policy. My share in ethanol production is only 0.07 per cent. With such a small stake, there is no doubt of any significant financial benefit,” he said in an exclusive interview with India Today TV.
Dismissing allegations of conflict of interest, Gadkari added, “The charge that I made ethanol policy for my own benefit is completely baseless. No one with a 0.07 per cent stake can influence the country’s ethanol policy for personal gain.”
“The policy benefits farmers and reduces fuel imports.”
The minister said that India currently produces approximately 1,500 crore liters of ethanol annually through about 550 ethanol production units, of which its share is only 0.07%.
Emphasizing that his focus has always been on clean energy, Gadkari said, “I am not just talking about ethanol. I am talking about alternative fuels. The use of ethanol will benefit farmers.”
He said the ethanol program aims to reduce India’s dependence on imported crude oil while creating additional income opportunities for farmers.
“The ethanol policy was not my decision alone.”
Gadkari rejected suggestions that the program was personally led by him, saying the policy was drawn up after extensive consultations and scientific evaluation.
“I did not make the decision on ethanol alone. The entire process takes place after consultation with the Ministry of Petroleum, the Council of Ministers and Scientific Research,” he said.
Throws out a challenge to critics about E20 fuel
In response to concerns that ethanol-blended gasoline is damaging vehicles, Gadkari challenged critics to provide evidence.
“If anyone’s car is damaged due to ethanol, they should file a complaint with the dealer and also with my ministry. We will investigate and provide relief,” he said.
He also asked, “Can you name two people you know personally whose gasoline-powered cars were damaged by ethanol?”
The minister said automakers, including Maruti Suzuki, Toyota, Tata Motors and Mahindra, had not reported complaints linking E20 fuel to vehicle damage.
Referring to a recent case involving a Toyota vehicle, Gadkari said the investigation found that water contamination – not ethanol – was responsible for the defect.
“This is not a pilot project. The vehicles undergo testing for four years and travel thousands of kilometers before approval is granted,” he said.
“Trying to smear me”
Gadkari described the controversy as politically motivated and said there was an “attempt to discredit me and the ethanol programme”.
Ethanol is already widely used in countries like the US, Brazil, Japan, Germany, Thailand and Sweden, he added, alleging that India’s ethanol blending program follows globally accepted practices and is not an experimental model.
Gadkari’s comments come amid an ongoing debate over the impact of E20 gasoline on fuel efficiency and compatibility of older vehicles. While the government maintains that there is no proven evidence that E20 fuel harms vehicles, some vehicle owners and industry observers still raise concerns about its long-term effects on vehicles originally designed for low-ethanol blends.
