New Delhi, September 11, 2025 – Union Minister for Road Transport and Highways Nitin Gadkari said the government is now testing isobutanol as an alternative for blending with diesel after earlier experiments with ethanol failed.
Speaking at the India Sugar & Bio-Energy Conference on Thursday, Gadkari explained that attempts to mix 10 percent ethanol with diesel were unsuccessful, prompting a shift toward isobutanol, a derivative of ethanol. Meanwhile, the rollout of E20 petrol, which blends 20 percent ethanol with petrol, is progressing steadily across the country.
The E20 mandate, first introduced at select fuel stations in April 2023, has expanded nationwide, and by April 2025 it replaced E10 fuel as the new standard. Ethanol used in E20 is largely derived from sugarcane and grains such as maize and rice.
Addressing criticism on social media that the blending programme could harm engines and reduce mileage, Gadkari dismissed the concerns as part of a “paid campaign” against him, adding that the Supreme Court had already rejected petitions challenging the policy.
India is the world’s second-largest sugar producer after Brazil and the third-largest importer of crude oil. With around 85 percent of its fossil fuel needs imported, the government is accelerating biofuel production to cut dependency. Gadkari highlighted that biofuels are more affordable and are being developed for use not just in vehicles, but also in tractors, aviation, and the fertiliser sector.
He noted that compressed biogas and alternative feedstocks such as corn, bamboo, and rice stalks are being promoted. The corn cultivation area has already tripled due to government incentives for biofuels.
At the same event, Union Minister Prahlad Joshi praised the synergy between sugarcane farmers, the sugar industry, and the energy sector, calling it a “moment of transformation.” He said biofuel production has created reliable income streams for farmers and mills while ensuring timely payments to growers who historically faced delays.
Joshi added that India’s progress in ethanol production reflects a broader success in delivering clean, green energy and strengthening rural economies.
