Union Road Transport and Highways Minister Nitin Gadkari has vehemently rejected allegations of a conflict of interest regarding India's ethanol-blending policy. Speaking on Wednesday, Gadkari asserted that he holds no significant financial stake in the program, despite his family's involvement in the sugar industry.
Minister Rejects Personal Gain Claims
Gadkari dismissed claims that the ethanol program was designed for his personal benefit. He clarified that his family's sugar business predates the policy's introduction and that his share in the country's total ethanol production is a mere 0.07%.
"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," Gadkari stated in an interview.
He further emphasized that a stake of such minimal size could not possibly influence a national policy for personal gain, calling the accusations "completely baseless."
Benefits for Farmers and Fuel Security
The minister highlighted that the primary objectives of the ethanol program are to benefit farmers and reduce India's reliance on imported crude oil. India currently produces approximately 1,500 crore litres of ethanol annually from around 550 units.
"I don't talk only about ethanol. I talk about alternative fuels. The use of ethanol will benefit farmers," he explained, underscoring his broader focus on cleaner energy alternatives.
Policy Formulation and Vehicle Concerns
Gadkari also addressed suggestions that the policy was his unilateral decision. He clarified that the ethanol program was a result of extensive consultations and scientific evaluations involving the Petroleum Ministry, the Cabinet, and scientific research bodies.
Regarding concerns about E20 fuel damaging vehicles, Gadkari challenged critics to provide concrete evidence. He urged anyone experiencing vehicle damage attributed to ethanol to file a complaint with their dealer and his ministry for investigation and relief.
"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 affirmed.
He noted that major automakers like Maruti Suzuki, Toyota, Tata Motors, and Mahindra have not reported complaints linking E20 fuel to vehicle damage. A recent incident involving a Toyota vehicle, for instance, was found to be caused by water contamination, not ethanol. Gadkari stressed that vehicles undergo rigorous testing for years before approval for such fuel blends.
Political Motivation Behind Allegations
The Union Minister labeled the controversy as politically motivated, describing it as "an attempt to malign me and discredit the ethanol programme." He pointed out that ethanol is widely adopted in numerous countries, including the US, Brazil, Japan, Germany, Thailand, and Sweden, indicating that India's program aligns with globally accepted practices rather than being an experimental model.
The ongoing debate surrounds the impact of E20 petrol on fuel efficiency and its compatibility with older vehicles. While the government maintains a lack of proven evidence for vehicle damage, some owners and industry observers continue to voice concerns about long-term effects on vehicles not originally designed for higher ethanol blends.