'I gain nothing from ethanol policy': Nitin Gadkari rejects conflict of interest charge

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 has no significant financial stake in the policy.

Gadkari dismissed claims that he personally benefited from the ethanol programme, saying his family’s sugar business existed long before the policy was introduced.

“I gain nothing from the ethanol policy. My share in ethanol production is just 0.07 per cent. With such a small stake, there is no question of any significant financial benefit,” he said in an exclusive interview with India Today TV. 

Rejecting allegations of conflict of interest, Gadkari added, “The charge that I framed the ethanol policy for my own benefit is completely baseless. A person with a 0.07 per cent stake cannot influence the country’s ethanol policy for personal gain.”

‘Policy Benefits Farmers, Cuts Fuel Imports’

The minister said India currently produces nearly 1,500 crore litres of ethanol annually through around 550 ethanol-producing units, of which his share is only 0.07%.

Emphasising that his focus has always been on cleaner energy, Gadkari said, “I don’t talk only about ethanol. I talk about alternative fuels. The use of ethanol will benefit farmers.”

He said the ethanol programme was designed to reduce India’s dependence on imported crude oil while creating additional income opportunities for farmers.

‘Ethanol Policy Was Not My Decision Alone’

Gadkari rejected suggestions that the programme was driven by him personally, saying the policy was framed after extensive consultations and scientific evaluation.

“I didn’t make the decision on ethanol alone. The entire process is conducted after consultation with the Petroleum Ministry, the Cabinet, and scientific research,” he said.

Throws Challenge To Critics Over E20 Fuel

Responding to concerns that ethanol-blended petrol damages vehicles, Gadkari challenged critics to produce evidence.

“If anyone’s vehicle has been damaged because of ethanol, they should file a complaint with the dealer and also with my ministry. We will investigate and provide relief,” he said.

He further asked, “Can you name even two people personally known to you whose petrol vehicles were damaged because of 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 water contamination—not ethanol—to be responsible for the malfunction.

“This is not a pilot project. Vehicles undergo testing for four years and run for lakhs of kilometres before approval is granted,” he said.

‘Attempt To Malign Me’

Calling the controversy politically motivated, Gadkari said there was “an attempt to malign me and discredit the ethanol programme”.

He added that ethanol is already widely used in countries such as the US, Brazil, Japan, Germany, Thailand, and Sweden, arguing that India’s ethanol-blending programme follows globally accepted practices rather than an experimental model.

Gadkari’s remarks come amid an ongoing debate over the impact of E20 petrol on fuel efficiency and the compatibility of older vehicles. While the government maintains there is no proven evidence that E20 fuel damages vehicles, concerns continue to be raised by some vehicle owners and industry observers over its long-term effects on vehicles originally designed for lower ethanol blends.