Nitin Gadkari Backs Isobutanol as Diesel Alternative for Tractors

New Delhi – Mr. Nitin Gadkari., Union Minister for Road Transport and Highways in India, is intensifying efforts to promote cleaner fuels in agriculture and construction sectors.

In a recent meeting with industry stakeholders, Gadkari emphasized the potential of isobutanol - a biofuel derived from ethanol, as a viable substitute for diesel in tractors and construction equipment. Produced through fermentation, isobutanol offers higher energy density and lower corrosiveness compared to ethanol, making it a more engine-compatible alternative fuel.

Mr. Nitin Gadkari., Union Minister for Road Transport and Highways, said, “We have asked the industry if diesel engines can run on isobutanol. Some people are doing it on electricity. The import of fossil fuels into our country is so big that nothing can be done about it. So, we should look for alternatives. And I am sure that all alternatives will be available in the market. Some people come after doing some experiments. So we are encouraging them. We are working to introduce isobutanol and ethanol into tractor engines as well.”

Diesel remains the backbone of India’s fuel usage, accounting for nearly 40% of the country's crude oil consumption. According to the Petroleum Planning and Analysis Cell (PPAC), diesel usage grew by 2% in FY 2024–25, and is projected to increase by 3% in FY 2025–26.

Gadkari addressed the potential of isobutanol and ethanol as alternative fuels for diesel-powered tractors and harvesters. While electric tractors are emerging globally, they remain largely excluded from India’s mainstream subsidy programs like FAME and PM-eDrive. Nonetheless, several Indian startups are developing electric tractors targeted at farming and waste management sectors.

India is now the third-largest construction equipment market globally. The Indian Construction Equipment Manufacturers’ Association (ICEMA) reported a 3% growth in FY 2024–25, with total sales reaching 1.40 lakh units. Domestic sales raise by 2.7% to 1.26 lakh units, and exports surged by 10% to 13,230 units.

The push for alternative fuels is growing, particularly in India’s off-road and construction sectors. Leading OEMs are already exploring various clean energy solutions. JCB India, for instance, has developed a hydrogen-powered machine, while companies like SANY India and Schwing Stetter are advancing electric-powered equipment. Global players such as ZF Group are investing in fuel-agnostic machinery capable of operating on multiple fuel types.

Under its National Biofuel Policy, India aims to blend 20% ethanol in petrol and 5% biodiesel in diesel by 2030. These efforts aim to lower emissions, reduce fuel imports, and support farmers by creating new demand for agricultural by-products.