# India Targets Alternative Fuels to Slash ₹22 Trillion Import Bill Minister Nitin Gadkari promotes indigenous energy sources to reduce fossil fuel dependency. - **Source:** [mint - industry](https://www.livemint.com/rss/industry) - **Published:** 2026-11-02 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/3466c5b5-9699-4bf8-9522-7259002d6a9d ## Strategic Energy Shift Union Minister Nitin Gadkari announced a national push to accelerate alternative fuel production to mitigate India's ₹22 trillion annual fossil fuel import bill. Geopolitical volatility and global energy price fluctuations have made energy security a critical economic challenge. The government aims to transition from an energy importer to a producer of indigenous, cost-effective, and sustainable energy. ## Ethanol Blending Progress India's experience with E20, a 20% ethanol-blended petrol, demonstrates significant potential for reducing crude oil dependence. Currently, 40 million four-wheelers and 200 million two-wheelers utilize this blend. The government is now advancing flex-fuel technology, with major manufacturers like Tata Motors, Mahindra, Toyota, Suzuki, and Hyundai developing vehicles capable of operating on varying ethanol proportions. ## Biofuel and Aviation Trials The government is exploring broader fuel alternatives, including biofuel-blended diesel and sustainable aviation fuel. The Automotive Research Association of India is currently conducting trials on a 15% isobutanol blend in diesel. Furthermore, authorities plan to introduce a 2% biofuel blend in aviation turbine fuel, marking a strategic initial step toward long-term sustainable aviation fuel adoption. ## Compressed Biogas Initiatives The biomass-to-energy programme promotes compressed biogas production from agricultural residue like rice straw. Approximately 3,000 plants are registered, with 280 already operational. This initiative serves a dual purpose by providing a viable alternative to stubble burning in Punjab and Haryana while converting organic waste into methane for use as fuel or hydrogen production. ## Industrial Emission Conversion Research is underway to combine carbon dioxide with hydrogen to produce urea, potentially lowering reliance on imported fertilizers. Additionally, the government is testing bio-bitumen made from agricultural residue, waste plastic, and rubber tyre powder for highway construction. This innovation aims to replace the 50% of bitumen currently imported from Iran and other West Asian countries. ## Hydrogen Infrastructure Development Green hydrogen is identified as a key component of India's future energy mix. The ministry plans to install hydrogen filling stations along 10 highway routes to support trials for heavy commercial vehicles. Collaboration with automobile manufacturers and energy companies is ongoing to develop hydrogen-powered trucks and buses, leveraging renewable energy for production processes. ## Electric Mobility Expansion Electric vehicles remain a core focus, supported by declining lithium-ion battery costs and research into alternative battery chemistries. The government emphasizes the necessity of solar-powered charging infrastructure and advanced energy storage systems to scale adoption. These technologies are expected to improve the overall affordability of electric mobility for the broader Indian consumer market. ## Economic and Rural Impact The transition to alternative fuels is designed to channel investment into rural, agricultural, and tribal communities. By empowering farmers to become energy producers alongside food growers, the government seeks to create new income opportunities. Success requires sustained collaboration between startups, research institutions, and industry to ensure technologies are commercially viable and scalable nationwide. ## Sources covering this story - https://www.livemint.com/industry/energy/india-eyes-alternative-fuels-to-cut-22-trillion-fossil-fuel-import-bill-gadkari-11793631334430.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._