India is accelerating its efforts to reduce dependence on imported fossil fuels as Union Road Transport and Highways Minister Nitin Gadkari pushes for greater adoption of alternative fuels. Speaking at ENRich 2026, a KPMG event, Gadkari highlighted that India’s annual fossil fuel import bill stands at approximately ₹22 trillion, making energy security a major economic priority.
The government is promoting indigenous and cleaner energy alternatives, including ethanol, compressed biogas (CBG), green hydrogen and biofuels. The initiative aims to reduce import dependence, control pollution and create new economic opportunities.
Highlighting the progress of ethanol blending, Gadkari stated that approximately 40 million four-wheelers and 200 million two-wheelers are already using E20 petrol. Automobile manufacturers such as Tata Motors, Mahindra, Toyota, Suzuki and Hyundai are also developing flex-fuel vehicles.
The government is further encouraging CBG production using agricultural waste. Around 3,000 CBG plants have been registered, with approximately 280 already operational. This initiative could help farmers generate additional income while reducing crop residue burning.
Other initiatives include exploring biofuel blends in aviation fuel, hydrogen-powered commercial vehicles and bio-bitumen for road construction.
Gadkari emphasised that India must focus on affordable, locally produced and commercially viable energy solutions. A stronger alternative fuel ecosystem could reduce India’s energy import burden, strengthen rural economies and accelerate the country’s transition towards sustainable mobility and energy independence.
