New Delhi: The government on Thursday told the Lok Sabha that India’s ethanol-blended petrol programme has delivered major economic and environmental gains, including foreign exchange savings of more than ₹1.40 lakh crore and substantial benefits to farmers, reports The Economic Times.
Responding to concerns about the impact of ethanol-blended fuel on vehicles, Union Road Transport and Highways Minister Nitin Gadkari said extensive testing has shown no adverse effects on cars using ethanol–petrol blends.
Calling E20 petrol—fuel containing 20% ethanol—“a healthy trend” and a key part of India’s green transition, Gadkari said the blended fuel is less polluting and plays a crucial role in reducing crude oil dependence.
Gadkari also highlighted the positive impact on rural economies, stating that ₹40,000 crore has been paid to farmers for feedstocks like sugarcane and maize used in ethanol production. This income, he said, strengthens agricultural livelihoods.
Petroleum Minister Hardeep Singh Puri added that the ethanol blending programme has fundamentally changed the energy–agriculture equation. Money that was once spent on crude oil imports is now reaching Indian farmers, turning them into “Urjadaatas” (energy providers) in addition to “Annadatas” (food providers).
He said that from ESY 2014–15 to ESY 2024–25 (up to July 2025), public-sector oil marketing companies have blended enough ethanol to save India over ₹1,40,000 crore in foreign exchange outgo.
