Campaigns against E20 fuel a handiwork of ‘petrol lobby and other interests’: Gadkari

NEW DELHI: Days after the Supreme Court rejected a PIL challenging the nationwide rollout of 20% ethanol-blended (E20) petrol, road transport & highways minister Nitin Gadkari on Wednesday blamed the “petrol lobby” and other “interests” behind the social media stories against blending.

"Everywhere there are lobbies, there are interests... petrol lobby is very rich," he said when asked about the spate of social media posts where consumers could be seen complaining about the reduction of mileage and damage to the engines of older vehicles due to the E20 fuel.


Speaking at the Auto Retail Conclave organized by the Federation of Automobile Dealers Associations (FADA), Gadkari said that ethanol—produced from sugarcane, broken rice, and other agricultural products—is expected to help reduce India's dependence on foreign oil.

The country is spending Rs 22 lakh crore for importing fossil fuels, which are also leading to "problems of pollution" across cities, the minister added.

He said companies are manufacturing electric cars, buses, and trucks in India as they are very cost-effective. "The cost of lithium-ion batteries is also reducing. In due course of time, the price of petrol, diesel, and electric vehicles will be the same."

The minister also said the manufacturing capacity of electric buses in India is 50,000-60,000 units per year, against a requirement for nearly one lakh units annually. "We need to increase the production of electric buses... There is a huge market for exports also. This is the opportunity for electric vehicle companies."

The minister also said the transport ministry is working to encourage the use of flex-fuel engines in agricultural equipment vehicles.

On the growth potential of the passenger vehicle market, he said the government aims to make the Indian market the top seller in the world within five years.

"Within five years, our target is to make India's automobile industry number 1 in the world... it is difficult, but not impossible," he said, adding that the quality of vehicles manufactured in India is good while production costs are low compared to other countries.

"When I took charge as transport minister, the size of the Indian automobile industry was Rs 14 lakh crore. The size now is Rs 22 lakh crore," Gadkari said, adding that at Rs 78 lakh crore, the US is the biggest market globally, followed by China (Rs 47 lakh crore).

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