Ethanol blending a step towards diversification of agriculture: Gadkari

Union minister Nitin Gadkari on Thursday defended the Centre's ethanol-blending programme, rejecting claims that petrol mixed with ethanol damages vehicles and saying the policy was aimed at diversifying agriculture by creating an additional market for farm produce.

Speaking at the inaugural session of the 'Bihar Investor Summit 2026: The Emerging Investment Destination of India', Gadkari said 4 crore four-wheelers and 20 crore two-wheelers had been running on petrol blended with ethanol since 2022.

"I challenge anybody to come up with the complaint that his or her vehicle has suffered damage on this account. Of course, those with vested interests may have some other story to tell," said Gadkari, who is the Union road transport and highways minister.

He said the decision to blend ethanol with petrol was taken not only from the perspective of fuel but also to diversify the agriculture sector towards energy and power.

"We must understand that the decision to blend ethanol with petrol was taken with a view to diversification of agriculture towards energy and power sectors... Our farmers shall no longer remain 'anna data' (food producers) but also become 'urja data' (energy producers)," he said.

Gadkari claimed leading automobile manufacturers had also tested vehicles running on 100 per cent ethanol and said there had been no complaints.

"Of course, we are importing (conventional fuel) worth Rs 22 lakh crore, and those who feel that their business will get hit are bound to feel bad. But let me tell you, I am the minister in charge of the department concerned; all leading automobile brands have tried running their vehicles even on 100 per cent ethanol. And there have been no complaints," he said.

He said the use of corn for ethanol had also created additional earnings for farmers in Bihar and Uttar Pradesh.

"After the Union government took the decision to make ethanol out of corn and the same was used for the aforementioned purposes, it resulted in additional earnings of up to Rs 45,000 crore for farmers of Bihar and Uttar Pradesh. Is it not preferable to serve the interests of those from whom we import (fuel)," he asked.

Gadkari said the government was pursuing innovation in alternative fuels, noting that aviation fuel had also been produced using rice straw.

"We have even made aviation fuel with rice straw. The future belongs to innovation, technology and research. And a state like Bihar has to play a key role in this direction," he said.

The minister also highlighted Bihar's potential in tourism and agriculture-linked sectors, saying the state had considerable resources and opportunities for investment.

He pointed to the international demand for makhana, or Indian fox nuts, which are produced in large quantities in Bihar.

"Under the leadership of Chief Minister Samrat Choudhary, the state is bound to scale new heights," Gadkari said.

Addressing the summit, Choudhary urged investors to invest in Bihar, promising government support and access to a large market for businesses whose products met the required standards.