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Are Gadkari Family Businesses Connected To Ethanol Blending?

Critics allege that Gadkari’s enthusiastic promotion of ethanol blending directly benefits his family’s business empire.

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Are Gadkari Family Businesses Connected To Ethanol Blending?

Are Gadkari Family Businesses Connected To Ethanol Blending?

India’s aggressive ethanol blending program, once hailed as a green fuel revolution to reduce carbon emissions and oil imports, is now under a cloud of suspicion.

At the centre of the debate is Union Minister for Road Transport and Highways, Nitin Gadkari, one of the most vocal champions of ethanol as an alternative fuel.

With the government preparing to finalise 27% ethanol blending (E27) norms by August 2025, critics and opposition leaders are raising sharp questions: Does Gadkari’s policy advocacy overlap with his family’s business interests in ethanol production?

The Government of India achieved its target of 20% ethanol blending (E20) in petrol by 2023, seven years ahead of its 2030 deadline.

While the move was projected as a major step toward energy independence, consumers have complained of reduced mileage and engine damage in vehicles not built for higher ethanol content.

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The sudden acceleration toward E27 blending has triggered confusion and scepticism, especially after the Petroleum Ministry initially dismissed reports about the new norms as “misleading and speculative”, only for Gadkari to confirm later that guidelines would indeed be finalised.

This flip-flop has fueled suspicions that unpopular policies are being denied first and quietly introduced later, a method critics say is becoming routine.

The Business Links: Companies Connected to the Gadkari Family

Investigations by media outlets, corporate filings, and public databases reveal that multiple ethanol-producing companies are either directly or indirectly linked to Gadkari and his family:

  • CIAN Agro Industries & Infrastructure Ltd: Headed by Gadkari’s son Nikhil Gadkari, this firm entered the ethanol space in February 2024. Within just a year, its revenues skyrocketed from ₹17 crore (as of June 2024) to ₹510 crore (as of June 2025). CIAN has also signed an MoU to develop CO₂-to-ethanol technology. Over 67% of its shares are reportedly held by promoter-linked entities tied to the Gadkari family network.

  • Purti Group: Founded by Nitin Gadkari himself, the Purti network includes companies like Purti Power and Sugar Ltd, Purti Agrotech, Purti Marketing, and Purti Alternative Fuels, many of which hold cross-shareholdings in ethanol-related ventures.

  • Manas Agro Industries and Power: Linked to Gadkari’s son Sarang Gadkari, this firm is another ethanol producer associated with the Purti ecosystem.

  • Other Entities: Records also link the family to Mahatma Sugar and Power Ltd, Wainaganga Sugar and Power Ltd, Yash Agro Energy Ltd, and GMT Mining and Power Pvt. Ltd, all companies engaged in sugar, power, and ethanol-related businesses.

The complex web of cross-holdings between Purti Power, Vidarbha Realtors, Purti Agrotech, and Ashwami Sales & Marketing further blurs the line between policy and privte enterprise.

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Critics allege that Gadkari’s enthusiastic promotion of ethanol blending directly benefits his family’s business empire. Political opponents argue that what is being sold as a green initiative may in fact be a form of crony capitalism, enriching those at the top while ordinary citizens bear the cost through fuel inefficiencies, vehicle wear-and-tear, and higher maintenance.

As one viral comment on social media put it: “This ethanol is being poured into your fuel tank by E-27 Gadkari — even if your car breaks down.”


However, Gadkari has strongly denied any conflict of interest, insisting that his ethanol advocacy is aimed at helping farmers, rural industries, and the environment.

He has often accused a “petroleum lobby” of spreading misinformation, arguing that ethanol reduces oil imports and provides sugarcane farmers with higher income.

Dismissing claims that many vehicles are not E20 compatible, Gadkari, in an interview with Moneycontrol, said that the authorities have verified everything on the ground.

“This is completely false. We have done trials on old cars. In Brazil, they do 27 per cent blending, but there have been no complaints. Some people in the petroleum lobby are spreading this… we have verified everything on technical grounds,” he was quoted as saying.

India achieved its target of 20 per cent ethanol blending with petrol five years ahead of schedule, the Indian Sugar & Bio-energy Manufacturers Association (ISMA) said in July.

However, some media reports and consumers have raised questions about the efficiency of the fuel, which has been claimed to corrode engines and reduce mileage.

Earlier this week, Gadkari had also defended the programme in Nagpur, stressing that ethanol blending was not only a question of cleaner energy but also a “moral responsibility” to support farmers.

“If farmers benefit and the nation reduces its oil imports, why should anyone oppose it? Those who question it are doing so at the behest of vested interests,” he said.

Experts have flagged concerns that 20 per cent ethanol blending with petrol has an impact on the overall performance of vehicles. Service centres have further claimed that non-E20-compliant vehicles, which still make up a large chunk of cars on Indian roads, are facing more frequent engine wear and gasket failures.

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