Punchline: When policies fuel profits, the line between national interest and personal gain blurs.
The Ethanol Revolution
India’s ethanol blending program has been hailed as a green leap forward. From just 1.5% in 2014, the blending rate has soared to nearly 20% in 2025. The government claims this saves over ₹1.1 lakh crore in oil imports, boosts farmers’ income by creating demand for sugarcane, and cuts carbon emissions equivalent to millions of trees planted.
On paper, the story is a success. But beneath the clean energy narrative lies a controversy that refuses to die down.
Gadkari at the Center of the Storm
Union Minister Nitin Gadkari, one of the loudest champions of ethanol, has consistently defended the policy against critics. He dismisses concerns of reduced mileage and engine wear, blaming the petroleum lobby for spreading fear. Gadkari even challenged critics: “Show me one car that has faced problems due to E20.”
However, his family’s deep involvement in the ethanol business has sparked allegations of conflict of interest. His elder son, Nikhil Gadkari, leads CIAN Agro Industries, while his younger son, Sarang Gadkari, manages Manas Agro—both companies heavily invested in ethanol production.
The Optics Problem
The numbers are staggering:
- CIAN Agro’s revenue jumped from ₹17 crore to ₹511 crore within a year.
- Profits soared from near-zero to ₹52 crore in the same period.
This meteoric rise coincided almost perfectly with the government’s ethanol push. Critics argue that while Gadkari may not have broken the law, the optics of a Cabinet Minister driving a policy that boosts his family’s firms are damaging.
Public Backlash and Criticism
Public forums are abuzz with anger. Many accuse the government of forcing blended fuel on consumers without choice, despite reports of 2–5% mileage loss and compatibility concerns for older cars. Some even call it “policy by profit,” questioning if the ethanol push is designed more to benefit sugar and ethanol lobbies than the average citizen.
Civil society groups also raise the food vs. fuel debate, warning that using rice and sugarcane for ethanol risks food security and distorts crop markets. Meanwhile, second-generation (2G) ethanol from waste and non-food sources remains underdeveloped, as pricing policies continue to favor traditional (1G) players.
The Government’s Defense
The government insists the ethanol roadmap is vital for energy security and climate goals. Gadkari and industry bodies like ISMA call it a “national imperative.” They argue that reducing oil imports, creating rural jobs, and cutting emissions far outweigh individual profit concerns.
Still, Gadkari’s personal proximity to the industry makes the defense appear compromised. As one commentator noted: “When family profits skyrocket alongside national policy, the conflict isn’t technical—it’s ethical.”
Conclusion: A Policy at Crossroads
India’s ethanol story is both a symbol of ambition and a case study in blurred lines. Ethanol is undeniably cleaner than fossil fuels, and the policy has real benefits. But unless the government ensures transparency, safeguards against conflicts of interest, and accelerates sustainable 2G ethanol, the narrative will remain tainted.
Final Thought: Ethanol may be cleaning India’s air, but it has also clouded the nation’s trust in its leaders.
FOR MORE BLOGS – beyondthepunchlines.com
Author: Team BTP
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