Should bring alternative fuels under priority sector lending: Nitin Gadkari

The alternative fuel sector should be brought under priority sector lending according to Transport Minister Nitin Gadkari.

Addressing a conference on Financing electric vehicles (EVs) and the Bio-energy sector, he said, “The most apt solution for resolving the financing problems of the alternative fuel sector is to bring it under priority sector lending. I will be taking this request to the Finance Minister and the Reserve Bank of India.”


“Doing this will reduce pollution and the import bill of the country. This sector will also help increase our exports and employment potential,” he added.

Gadkari also said that companies in the alternative fuel need to work together, instead of silos as they presently are, and combine efforts towards displacing petrol and diesel vehicles.

Commenting on agriculture, he said that there is a need for diversification of food crops and that the sugar industry should think the most seriously about increasing ethanol production.


“The requirement of ethanol is so high that the present production will never be able to meet demand. The goal of 20 per cent blending of petrol with ethanol will require 1000 crore litres and I don’t think we will be able to meet that requirement in the next three to four years,” he said.

Gadkari also said that the cost of electric vehicles can come down to below that of petrol and diesel vehicles.

“Those days are not too far away when the cost of an electric vehicle engine will be equal to a petrol or diesel one. The way production is going to rise in the coming days, I believe the costs will be equal. I also have a gut feeling that eventually the e-vehicles will be cheaper to make that the petrol or diesel ones,” he said.

Gadkari also said that the will be meeting with Telecom Minister Ashwini Vaishnaw this week. “I will be urging him that diesel generators of telecom towers should be converted to run on ethanol. In my conversation with diesel generator makers, I have got to know that this conversion will lead to an additional requirement of 2000 crore litres of ethanol,” he said.