The Congress seems to be doing it for political optics and strategy reasons but there is also a strong buzz about “internal BJP dynamics” being a key cause. There is no denying data linked to companies but analysts point how Gadkari, a heavyweight in the BJP and its ideological fountainhead RSS, was “not so aligned with the “BJP of Narendra Modi-Amid Shah”.
It was being talked about on social media for a while but on Wednesday the issue acquired a political undertone when the Congress party openly accused Union Road Transport Minister Nitin Gadkari of pushing India’s ethanol blending policy to benefit his family businesses, alleging a “clear conflict of interest.”
Interestingly, while the Congress does not spare the BJP and the Narendra Modi government when it comes to cornering it on political issues it has, so far, largely steered clear of taking on Gadkari.
Speculations are also there about some internal BJP dynamics at play as far as Gadkari is concerned.
What Congress said
Congress leader Pawan Khera alleged that Gadkari’s sons are key players in the ethanol supply chain.
Demanding an inquiry, he also wondered if the Lokpal would “dare to investigate Gadkari and his sons” over what he described as a “policy-driven windfall.”
“Cian Agro Industries, owned by Nikhil Gadkari, and Manas Agro Industries, where Sarang Gadkari is a director, have seen exponential growth since the government’s aggressive ethanol drive,” Khera said. He also alleged that Cian Agro’s revenues jumped from Rs 18 crore in June 2024 to Rs 523 crore in June 2025 with stock price soaring over 2,100%. “While citizens’ wages have stagnated, Gadkari’s family firms are reaping massive windfalls,” he claimed.
Khera said that Gadkari in 2018 promised that ethanol blending will cut petrol and diesel prices to around Rs55 per litre, “instead, petrol has risen from Rs71 in 2014 to nearly Rs 95 in 2025, while diesel has climbed from Rs 55 to Rs 87”. He also accused the BJP-led NDA government of ignoring concerns over vehicle performance, maintenance costs and water usage, questioning why ethanol was being produced from sugarcane and grains and not from wood waste or municipal waste as originally projected. “Why push sugarcane-based ethanol if not for vested interests? Gadkari and his associates have deep links with sugar mills,” Khera claimed.
The Congress leader also warned that ethanol blending (E20) could reduce engine life and fuel efficiency.
Farmers are being denied fair MSP for grains diverted to ethanol plants and seven years on, prices remain unchanged despite 20% blending and cheaper Russian crude, he said, “who is pocketing the profits?”
By tying this to Gadkari’s ethanol push, Congress seems to be tapping into existing public resentment and with elections in sight, farmer issues are politically sensitive.
Internal BJP dynamics
The Congress seems to be doing it for political optics and strategy reasons but there is also a strong buzz about “internal BJP dynamics” being a key cause. There is no denying data linked to companies but analysts point how Gadkari, a heavyweight in the BJP and its ideological fountainhead RSS, was” not so aligned with the“BJP of Narendra Modi-Amid Shah”.
So is the controversy also a sign of BJP’s internal fault lines and perhaps something bigger—a possible involvement of a big corporate house in a larger plan—that remains to be seen but some critical facts regarding ethanol also cannot be ignored.
Ethanol facts
For instance, India advanced the 20% ethanol blending goal from 2030 to 2025, and Gadkari was one of those who has been showcasing its benefits. While the government says ethanol blending helps reduce import bills, improve energy security and cut emissions, the fact is Gadkari is not the Petroleum Minister but the Road Transport & Highways Minister, however, despite that he has been one of the most vocal champions of ethanol use in vehicles. He has made in the past many public claims that ethanol would lower petrol/diesel costs and help farmers
The surge in revenue and stock price of companies owned by Gadkari’s family are backed by data. According to reports, publicly available company records confirm that Gadkari’s family owned companies operate in ethanol and related businesses. But the allegation that Gadkari pushed ethanol blending policy to enrich sons is a charge, and not a proven fact.
There is also public anger over fuel prices, despite cheaper global crude (especially Russian imports), petrol and diesel prices continue to remain high. Petrol and diesel prices are indeed higher today than in 2014 despite cheaper crude imports from Russia in recent years and ethanol blending has not translated into lower retail fuel prices for consumers. .
The Congress claims E20 reduces engine life and fuel efficiency by 25% nut reports quoting automakers acknowledge some efficiency drop (around 6–8%). Long-term engine impact studies in India are still limited. It is also true that sugarcane-based ethanol consumes a lot of water but figures depending on the crop, location, and production method.
Meanwhile, questions about who benefited most from ethanol blending—corporates, OMCs or farmers—remain.
