Cut Rs 22 Lakh Crore Import Bill: Gadkari Pushes for Biofuel Shift
Union Minister Nitin Gadkari urges agricultural diversification into biofuels to slash India's Rs 22 lakh crore fossil fuel import bill.
Union Minister for Road Transport and Highways Nitin Gadkari has made a strong call for the agricultural diversification biofuels movement to slash India's massive energy import bill. Speaking at the Enrich 2026 Experience Zone during KPMG's Energy and Resources Forum, the Minister emphasized that India must pivot toward indigenous alternative fuels to reduce a fossil fuel import burden that currently costs the nation approximately Rs 22 lakh crore.
A Strategic Shift: Import Substitution and Energy Security
Minister Gadkari outlined a clear vision for India's energy future, stating that the government's core policy is centered on solutions that are indigenous, cost-effective, pollution-free, and serve as substitutes for imports. By integrating the agriculture sector more deeply into the energy and power sectors, India can strengthen its energy security while simultaneously boosting the income of farmers.
The Minister highlighted that the transition to alternative fuels—including ethanol, compressed biogas (CBG), and green hydrogen—is not just an environmental necessity but an economic opportunity to create employment in tribal and rural regions.
The Ethanol Revolution and Flex-Fuel Vehicles
Progress in ethanol blending is already showing significant results. According to Gadkari, approximately 20 crore two-wheelers and four crore four-wheelers are now utilizing E20 fuel. To further this momentum, the Minister announced the upcoming launch of a Toyota Innova flex-fuel vehicle, which will be capable of running on 100 per cent bioethanol.
Major automobile players are already on board with this transition. Companies including Tata, Mahindra, Toyota, Suzuki, and Hyundai are actively working on developing flex-fuel vehicles. To support this, ethanol production can be scaled using a variety of sources, such as:
- Sugarcane juice and molasses
- Corn
- Broken rice
- Bamboo
Tackling Pollution with Compressed Biogas (CBG)
Addressing the issue of crop residue burning, Gadkari pointed toward the potential of bio-CNG. He noted that instead of burning rice straw, agricultural residue can be converted into fuel. Under the government's Gobardhan scheme, around 3,000 compressed biogas plants have been registered, with 280 already operational.
Green Hydrogen and Bio-Bitumen: The Next Frontiers
The Minister also touched upon the ambitious goals for green hydrogen. The Indian government is currently focused on driving down production costs from the current USD 5 per kg to USD 1 per kg. The global demand for India's capabilities is already evident, with the country receiving an order to export 5 lakh tonnes of hydrogen.
Innovating Road Construction
Beyond fuel, Gadkari highlighted a critical need in infrastructure: bio-bitumen. India consumes roughly 125 lakh tonnes of bitumen annually for road construction, with nearly half of that supplied via imports. Converting agricultural waste into bio-bitumen could significantly reduce this dependency.
A Diversified Approach to Energy
Concluding his address, Nitin Gadkari stressed that India should not rely on a single energy source. He advocated for a multi-pronged approach where various alternative fuel options are explored. He maintained that any technology adopted in the energy sector must meet three strict criteria: it must be proven, affordable, and commercially viable.