India's Rs 22 Lakh Crore Fossil Fuel Import Bill Highlights Need For Alternative Fuels: Gadkari

New Delhi, Nov 3 (KNN) Union Minister for Road Transport and Highways Nitin Gadkari has called for greater diversification of India's agricultural sector into energy production, saying the expansion of indigenous alternative fuels is important to reducing the country's annual fossil fuel import bill of Rs 22 lakh crore.

Speaking after inaugurating the Enrich 2026 Experience Zone at KPMG's Energy and Resources Forum, Gadkari said alternative fuels such as ethanol, compressed biogas, green hydrogen and bio-bitumen could strengthen energy security while creating additional income opportunities for farmers.

“Our policy is import substitute, cost effective, pollution free and indigenous,” he said, emphasising the potential role of agriculture in meeting the country's energy requirements.

Ethanol adoption and flex-fuel vehicles

Highlighting developments in the mobility sector, Gadkari said around 200 million two-wheelers and 40 million four-wheelers in India were currently running on E20 fuel blends, reported Money Control.

He said leading automakers, including Tata, Mahindra, Toyota, Suzuki and Hyundai, were working on flex-fuel vehicles. Plans were also underway to launch a Toyota Innova capable of running entirely on bioethanol.

Gadkari said ethanol production could use a range of feedstocks, including corn, broken rice, sugarcane juice, molasses and bamboo.

Expansion of compressed biogas

On waste-to-energy initiatives, the minister cited progress under the Centre's Gobardhan scheme, under which nearly 3,000 compressed biogas plants had registered, while 280 were already operational.

He said expanding such initiatives could help diversify the country's energy sources and increase the use of indigenous resources.

Focus on affordable green hydrogen

Gadkari also called for greater research into green hydrogen to bring down production costs. He said government efforts were aimed at reducing the cost of green hydrogen from USD 5 per kg to USD 1 per kg.

He stressed that technologies deployed in the energy sector should be proven, affordable and commercially viable.

The minister also advised against dependence on a single energy source, calling for a broader mix of clean energy solutions to support India's energy requirements.

(KNN Bureau)