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EquityWireAlternative biofuels: Govt to talk to agriculture equipment companies to promote biofuel use, says Minister Gadkari
Alternative biofuels

Govt to talk to agriculture equipment companies to promote biofuel use, says Minister Gadkari

This story was originally published at 16:05 IST on 10 September 2025
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Informist, Wednesday, Sept. 10, 2025

 

--Gadkari: Output capacity of electric buses below demand, need to raise it
--CONTEXT: Comments by Transport Minister Gadkari at auto dealer event
--Gadkari: Big global cos making cars in India, potential to export high
--Gadkari: India has good mining policy now to mine critical minerals
--Gadkari: In talks with cos to use alternate fuel in agri machinery
 

NEW DELHI – The Centre will hold talks with agriculture equipment manufacturers to promote the use of alternate biofuels in their machinery, Minister of Road Transport and Highways Nitin Gadkari said on Wednesday. Experiments done by the Automotive Research Association of India show that 10% of isobutanol can be added to diesel used by these machines.

 

Isobutanol is a biofuel produced from ethanol through a fermentation process that is less corrosive than ethanol.

 

Indian automobile companies have flagged that despite India's aggressive move towards electric vehicles, the country still has to rely on China for a few critical minerals, such as lithium-ion, which is essential to run batteries. However, Gadkari said that the situation is looking up as policies are being formulated to boost self-reliance in these areas.

 

"We have a very transparent and professional policy by which it can be easily possible to get (critical) minerals as early as possible," Gadkari said at a conference organised by the Federation of Automobile Dealers Associations. He added that companies can get access to certain minerals by scrapping older vehicles. The minister hailed the Indian automobile industry's increased focus on exports in recent years, especially by two-wheeler firms, as some of them export more than half of their production from India.

 

Asked about the slow adoption of electric automobiles in India, Gadkari said things are picking up gradually. The manufacturing capacity in the country of electric buses is 50,000-60,000 units per year, far less than the demand of around 100,000 units, Gadkari said.

 

Gadkari said a top executive of German automotive giant Mercedes-Benz told him that the company wants to make electric cars in India and export them. "Companies have good potential in India, but international potential is even better," Gadkari said. He also cited the example of British multinational manufacturer J.C. Bamford Excavators, which is selling its India-made products to the US.  End

 

Reported by Anand JC and Shakshi Jain

Edited by Saji George Titus

 

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