The discussions around ethanol blended fuel don’t seem to end anytime soon. Once again, Union Minister for Road Transport and Highways Nitin Gadkari charged against what he described as a “paid campaign” targeting him. Gadkari on Thursday dismissed recent criticism of the government’s ethanol blending programme while speaking at the 65th Annual Convention of the Society of Indian Automobile Manufacturers (SIAM). “The social media campaign was a paid campaign against me. The Supreme Court has already dismissed the petition. There was no fact,” he said.
The minister has faced scrutiny in recent weeks after vehicle owners and service centres claimed that higher ethanol blends could reduce fuel efficiency and damage older engines. Rejecting these fears, Gadkari said technical agencies had confirmed there was no such risk. “All testing agencies have confirmed there is no problem with implementation. The Automotive Research Association of India (ARAI) has already given clarity on the use of E20 fuel,” he added.
Govt’s push for ‘cleaner fuels’
Gadkari reiterated the government’s commitment to scaling up ethanol blending as part of its push for cleaner fuels and flex-fuel vehicles. Pointing to India’s annual fossil fuel imports worth Rs 22 lakh crore, he argued that domestic ethanol production was both an economic and environmental imperative. “If Rs 22 lakh crore is infused into the Indian economy, the benefits would be immense. We took the decision to produce ethanol from maize, and as a result, maize cultivation in Uttar Pradesh, Bihar and across the country has tripled,” he said.
Gadkari on vehicle scrappage
On vehicle scrappage, the minister said nearly three lakh vehicles had been scrapped till August 2025, including 1.41 lakh government vehicles. He said discussions with the Finance Minister were underway on GST rebates for consumers who scrap old cars and buy new ones. “Scrapping old cars and buying new cars gives a revenue benefit of Rs 40,000 crore to Centre and states. The policy could generate 70,000 jobs, reduce pollution and help recover rare earth materials,” he said.