What Does the Ethanol Controversy Around Gadkari Indicate?

By Bhaga Varkhade

Union Minister Nitin Gadkari, a member of Prime Minister Narendra Modi’s cabinet, is known for introducing innovative concepts and implementing them with full dedication. Although he belongs to the BJP, his work has earned him popularity across party lines. More than two and a half decades ago, when the idea of ethanol blending was introduced, Gadkari played a major role in its implementation. Keeping national interest in mind, he proposed various alternatives. While ethanol has been saving foreign exchange and strengthening the economy of cooperative and private sugar factories, it is unfair that Gadkari is now being placed in the dock over it.

At the beginning of the 21st century, India was facing three major issues: fuel scarcity, high foreign exchange expenditure on fuel imports, and environmental degradation. During Atal Bihari Vajpayee’s government, M.K. Anna Patil, who had previously worked as an executive director in the sugar cooperative sector, was serving as Rural Development Minister, while Ram Naik was the Petroleum Minister.

At that time, India was spending heavily on fuel imports. It became clear that petroleum would one day need alternatives and that non-conventional energy sources must be explored. Simultaneously, cooperative sugar factories were going through a severe financial crisis. To bring stability to this sector, provide additional income to farmers, and save foreign exchange, the idea of blending ethanol with petrol emerged.

BJP’s then state president, Suryabhan Vahadne Patil, strongly advocated this with Ram Naik and Anna Patil, and the policy was eventually announced. The U.S. and Brazil were already ahead in ethanol-blended fuel usage. In fact, two and a half decades ago, 1.1 million cars in Brazil were already running entirely on gasohol. After Vajpayee’s government introduced this policy, petroleum companies initially opposed it due to their vested interests in imports. Automobile companies, too, resisted ethanol blending. Just as railway tracks make noise when trains switch tracks, every system makes noise when change happens. People naturally prefer the status quo.

When the decision to blend 5% ethanol into petrol was taken, tenders were floated. But even after approval, ethanol was either not lifted promptly or payments were delayed. Automobile companies, along with garage owners, spread misconceptions such as ethanol-blended petrol causing water accumulation in tanks, vehicle breakdowns, and spark plug damage. But ethanol is anhydrous alcohol — it contains no water. It took considerable time to clear such misunderstandings with petroleum companies and automobile manufacturers.

Over the years, the necessity of ethanol blending became widely accepted. From 5% to 10%, and now 20%, ethanol is being blended into petrol. Even diesel has ethanol blends. With this background in mind, Gadkari’s advocacy for ethanol and the criticism against him must be seen in perspective.

Whenever Gadkari’s name comes up for higher positions or national-level competitions, allegations arise against him. Raids on his businesses occur, usually backed by conspiracies. During his possible reappointment as BJP’s national president, raids were conducted on his Purti Group, but the outcome of those raids was never disclosed. What was clear is that he never got the bigger post.

Now, after India achieved its 20% ethanol blending target, when the next steps were expected, allegations emerged involving Gadkari’s sons. Critics accused him of influencing policy to benefit his industrial group, even though the requirement for 20% ethanol blending in India is about one billion liters annually, whereas Gadkari’s businesses can produce only 50 crore litres — a negligible share.

Social media has turned into a double-edged sword. While the E20 blending program is being hailed by the government as a revolutionary step to cut carbon emissions and reduce fossil fuel imports, allegations on social media claim that fuel quality has dropped and vehicle life has reduced. Gadkari, however, has strongly refuted these accusations, calling them politically motivated and part of a paid campaign.

Ethanol-blended fuel reduces pollution and is crucial for India to achieve its net-zero carbon emission target by 2070. A report has shown that if pollution levels remain as they are, Delhi residents could lose ten years of life expectancy.

Yes, ethanol blending has drawbacks compared to pure petrol. Countries like the U.S. and Brazil, which lead in ethanol usage, have faced such challenges. Yet, safe and efficient use of ethanol blends ranging from 5% to 100% has been scientifically proven since the oil crisis of the 1970s.

The main argument for ethanol blending is import substitution and cost reduction. According to the government, 20% blending could save India $10 billion annually. However, the benefits are not evenly distributed across farmers, traders, and distilleries. In India, ethanol is produced from molasses, surplus food grains, and maize. Maize farmers, in fact, have benefited in recent years, but critics argue this could threaten national food security.

Once an ethanol-based economy is fully established, it may be hard to prioritize food stocks over fuel requirements during shortages. Critics also argue that ethanol affects engine efficiency, reduces material durability, and corrodes fuel systems. Some auto companies have claimed ethanol-blended petrol reduces mileage.

Globally, however, the number of vehicles running entirely on ethanol is increasing. Studies worldwide have shown that vehicles meeting Euro 2, U.S. Tier 1, and India’s BS2 standards (introduced in 2001) are compatible with ethanol blends up to E15. The “closed-loop fuel control system” mandated in BS2 helps maintain efficiency, reduces corrosion, and ensures performance.

Meanwhile, India has adopted two ethanol-specific standards and is expected to move toward E27, following Brazil’s example. Despite criticism, research by automobile industry bodies and companies like Renault has confirmed that 20% ethanol blending does not adversely affect vehicle mileage or performance.

Thus, the allegations against Gadkari collapse under technical and practical scrutiny.

(Writer Bhaga Warkhade is sr journalist)