The E-20 fuel policy and the government's ethanol-blending program have frequently drawn scrutiny, with critics questioning whether Union Minister Nitin Gadkari utilized these policies to benefit his family's business interests. Addressing these accusations for the first time, Nitin Gadkari has publicly clarified his position. He dismissed the conflict of interest claims, asserting that the contribution of his family's enterprises to the nation's total ethanol production is so minimal that it could not possibly exert any influence over official government policy.
Gadkari's defense on conflict of interest
Reflecting on the controversy, Nitin Gadkari stated that he does not personally oversee the operations of his factories, noting that his sons manage those business affairs. He explained that ethanol rates are determined by the Ministry of Petroleum through a tender process, with the Cabinet providing final approval and the Ministry allocating specific quotas. According to Gadkari, his family’s contribution accounts for a mere 0.07% of the total ethanol supply. He emphasized that with such a negligible share, the premise of any significant financial gain is entirely unfounded.
The bio-fuel policy framework
In May 2018, the Union Cabinet, of which Nitin Gadkari is a member, officially approved the 'National Policy on Biofuels-2018'. The policy set an ambitious target to blend 20% ethanol into petrol by the year 2030. Following this mandate, various oil marketing companies issued an 'Expression of Interest' (EoI) and subsequently signed long-term 'Off-Take Agreements' (LTOA) with promoters of 131 dedicated ethanol plants established across several states.
Details of family business entities
Nitin Gadkari’s sons, Sarang and Nikhil, are key figures behind 'Manas Agro' and 'Sian Agro Industries', corporations engaged in diverse sectors ranging from ethanol and biodiesel to vegetable oils and health products. 'Manas Agro', incorporated on September 6, 2012, features Sarang Gadkari as a whole-time director and operates in the domains of sugar, power generation, ethanol, bio-fertilizers, and biomass processing. According to available records, the firm reported an operating revenue exceeding 500 crore rupees during the 2023-24 fiscal year. Meanwhile, Nikhil Gadkari serves as the Managing Director of 'Sian Agro Industries and Infrastructure Limited'. This unlisted public entity, which was incorporated on September 13, 1985, focuses on manufacturing health care products, spices, and oils, recording an annual revenue ranging between 200 and 300 crore rupees.
