After petrol, Modi government to now mix biofuels with diesel
What's the story
India is gearing up to expand its biofuel initiative into the construction equipment sector, which heavily relies on diesel. The plan involves blending biofuels with diesel used in heavy carriers, cranes, bulldozers, and other large machines. The move comes after inter-ministerial talks between the Ministry of Road Transport and Highways and the Ministry of Heavy Industries.
Diesel consumption
Construction equipment sector a heavy consumer of diesel
The construction equipment sector accounts for 3-4% of India's annual diesel consumption, which is around 91 million tons. This sector could be the first to see mandatory biofuel blending before a nationwide rollout of 10% blended fuel. India has already achieved 20% ethanol blending in petrol and is now targeting high-fuel-consuming commercial vehicles to fast-track its goals.
Environmental impact
Biofuel blending to reduce crude oil import bill
The biofuel blending initiative is aimed at reducing India's massive crude oil import bill and moving toward net-zero emissions. It also seeks to increase farmer incomes through the use of crop-based biofuels. In FY25, India paid $137 billion to import 234 million tons of crude oil. Union Minister Nitin Gadkari has previously said that the construction equipment sector's annual diesel usage could be an opportunity for biofuel blending and cutting down on crude oil imports.
Industry response
Industry welcomes biofuel blending initiative
Industry leaders have expressed their willingness to accept biofuel blending as a way to cut emissions and fuel imports. Deepak Shetty, CEO and MD of JCB India, welcomed the initiative. He said, "We view these developments positively as they align with our commitment to sustainable innovation and India's broader goals of reducing pollution, cutting fossil fuel imports, and advancing toward net-zero emissions."
Fuel alternatives
Biofuels can help reduce farmers' economic burden
Biofuels like methanol, ethanol, and isobutanol are agricultural products and not import-dependent. Blending these green fuels into petroleum products can help reduce crude oil imports. Gadkari has also said that blending biofuels into fossil fuels could be an opportunity for farmers to raise their incomes as these fuels are made of agricultural waste and byproducts.