Nitin Gadkari slams ‘paid campaign’ on E20 fuel, seeks GST relief on new cars and scrappage

Union Minister Nitin Gadkari defends E20 petrol rollout after SC rejects challenges, calls out “paid campaign,” and urges GST relief for new car buyers scrapping old vehicles.

Union Minister for Road Transport and Highways Nitin Gadkari hit back at what he called a 'paid political campaign' targeting the government’s E20 petrol programme. Speaking at the 65th Society of Indian Automobile Manufacturers (SIAM) Annual Convention on September 11, Gadkari said all tests had confirmed there were no issues with the rollout of 20 percent ethanol-blended petrol.

He noted that recent fears over engine damage and warranty issues had been proven false. “All testing agencies have confirmed there is no problem with implementation,” he said, reaffirming the government’s push for cleaner fuels.

The remarks came shortly after the Supreme Court dismissed petitions that challenged the legality and safety of the E20 fuel mandate.

Also Read | E20 fuel: Will ethanol-mixed petrol impact mileage and vehicle life? Govt issues detailed response

Call for GST relief in scrappage policy

Gadkari also pressed the Finance Ministry to extend GST relief for buyers who scrap their old vehicles and purchase new ones. According to him, such a measure would support both consumers and the automobile sector while advancing India’s green mobility agenda.

He urged automakers to roll out more biofuel-powered vehicles and to pass on scrappage-linked discounts to customers. “This will help curb pollution and boost demand,” he said.

Do Not Miss | E20 rollout sparks insurance worries over mileage, engine damage; insurers say cover could be denied

Industry push and global standards

The minister thanked manufacturers for their role in India’s rapid transition from BSIV to BSVI emission standards. He assured industry leaders that the government would continue to align with global benchmarks, including Corporate Average Fuel Economy (CAFE) rules.

Looking ahead, Gadkari projected that India’s logistics costs would fall to 9 percent of GDP by the end of 2025, a move he said would make the economy more competitive.

Supreme Court backs ethanol policy

The Supreme Court recently dismissed a public interest litigation (PIL) against the E20 blending mandate. The petition had argued that most vehicles on Indian roads were not compatible with E20 fuel, raising risks of material degradation, safety hazards, mileage loss, and denial of insurance claims.

Rejecting the plea, the court sided with the government, which maintained that ethanol blending supports sugarcane farmers, cuts crude oil imports, and strengthens energy security. Officials also questioned whether “someone from outside the country” should dictate India’s fuel policy.

Gadkari on petroleum lobby and clean fuels

This isn’t the first time Gadkari has pushed back against criticism. On August 22, he told Moneycontrol that claims of ethanol being corrosive for engines were 'completely false,' accusing the 'petroleum lobby' of spreading disinformation.

“In Brazil, they do 27 percent blending but there have been no complaints. Ethanol is a very good, clean fuel. It helps farmers, reduces the oil import bill, and improves health outcomes,” he said.