Nitin Gadkari’s big plan after E20 petrol: Modi government now eyes blending 15 percent Isobutanol in diesel, minister shares details

According to official figures, the programme has helped save more than Rs 1.9 lakh crore in foreign exchange, reduced crude oil imports, and lowered carbon emissions.

Written by: Victor Dasgupta Edited by: Victor Dasgupta
Published: July 5, 2026, 7:06 AM IST

New Delhi: In a major development, India is bracing for the next phase of its biofuel transition. According to the reports, the Modi government plans to blend up to 15 percent isobutanol with diesel. The objective of this step is to reduce the country’s dependence on fossil fuel imports. Union Minister for Road Transport and Highways Nitin Gadkari shared this information.

While speaking about the government’s alternative fuel strategy, the union minister said that ethanol cannot be directly blended with diesel. Therefore, efforts are underway to convert ethanol into isobutanol, which could emerge as a better alternative. “Ethanol cannot be directly blended with diesel, so we are converting ethanol into isobutanol. Isobutanol can emerge as an alternative to diesel.” Nitin Gadkari said. “We have successfully operated two generator sets on 100 percent ethanol and isobutanol. This proves that engines can be developed to run on these fuels,” the minister further added.

Permission to blend isobutanol with diesel

  • The Modi government is working towards allowing the blending of up to 15 percent isobutanol with diesel, the minister informed.
  • The move has been described as an important step towards India’s energy self-reliance and the adoption of cleaner transport fuels.
  • Highlighting technological progress in the sector, Gadkari said that the results of pilot demonstrations have been encouraging.

What are the benefits of isobutanol?

  • Isobutanol is considered an excellent next-generation biofuel.
  • It has a higher energy density.
  • It performs better with engines.
  • It produces lower emissions compared to many conventional biofuels.
  • According to the officials, adopting isobutanol could further reduce India’s crude oil imports while also boosting demand for domestically produced biofuels.
  • The announcement comes just days after the Ministry of Petroleum and Natural Gas defended the government’s E20 ethanol blending programme in response to misinformation circulating on social media.

In a detailed clarification, the ministry rejected claims that ethanol production leads to excessive depletion of water resources, damages vehicle engines, invalidates insurance or warranty coverage, or harms the environment. The ministry stated that the programme is based on scientific studies, regulatory safeguards, and global experience with ethanol-blended fuels.

The ministry also pointed out that India achieved its target of blending 20 percent ethanol with petrol ahead of schedule.

According to official figures, the programme has helped save more than ₹1.9 lakh crore in foreign exchange, reduced crude oil imports, and lowered carbon emissions. It has also created additional income opportunities for farmers.

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