MC EXCLUSIVE Petroleum lobby creating ethanol controversy, says Nitin Gadkari

Union Minister Nitin Gadkari during the Monsoon session of Parliament. (PTI Photo)

Roads and highways minister Nitin Gadkari has dismissed as “completely false” the claims that blending 20 percent ethanol with petrol is corrosive for engines and many vehicles are not E20 compatible, saying the “petroleum lobby” was spreading the disinformation.

“This is completely false. We have done trials on old cars. In Brazil… they do 27 percent blending but there have been no complaints. There are some people in the petroleum lobby who are spreading this...we have verified everything on technical grounds,” the minister said in an interview of Moneycontrol.

MC Interview: Petroleum lobby fueling ethanol blending controversy, says Nitin Gadkari | Full Transcript
India in July achieved its target of blending 20 percent ethanol with petrol, five years ahead of schedule, as it looks to lower emissions and its fuel import bill.

There have been concerns around the blending programme, which some owners and experts say impacts vehicle performance and durability. They claim that blending ethanol with petrol drops fuel efficiency and its corrosive properties damage fuel systems.

There are also worries that the blending programme risks diversion of food crops from consumers to fuel. In India, ethanol is largely produced from sugarcane molasses, a byproduct of the sugar industry, but to meet blending targets, sources such as maize, rice, and damaged food grains are also being used.

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Defending the blending programme, the minister said ethanol is a “very good, clean fuel. It pushes the rural economy, helps farmers and reduces import bill on oil. Our policy is import substitution, pollution free and cost effective. Shouldn’t people improve their health?" he said.

Corn production has gone up three times in Bihar and Uttar Pradesh, the minister said. The average price of maize has gone up from Rs 14,000-Rs 15,000 to Rs 24,000-Rs 25,000 a tonne in the past four years, he said. In UP and Bihar, the price has gone up from Rs 1,200 per quintal to Rs 2,800.

Bihar goes to the polls later this year. According to an estimate, maize provides livelihood to 1.3 million Bihar farmers, most of whom are small and marginal.