Gadkari Shifts Focus to Construction Equipment, Tractors; Pushes for Isobutanol as Diesel Alternative

Road Transport and Highways Minister Nitin Gadkari, known for advocating cleaner fuels in passenger vehicles, has now turned his focus to the construction equipment and tractors, segments that have largely been overlooked in India's push for cleaner fuels.

The minister has called a meeting with industry players to explore the potential of isobutanol as a diesel alternative. Responding to a question from Autocar Professional at an event, Gadkari said, “Of ethanol, isobutanol is developed. And isobutanol can be added to diesel by 10%. So, I have given this suggestion. We have called for a meeting of construction equipment people.”

Isobutanol is a biofuel made from ethanol using fermentation processes. Compared to ethanol, it has higher energy density and is less corrosive. These properties make it suitable both for blending with diesel.

Gadkari added that isobutanol can even be used as a complete substitute for diesel. “Isobutanol can be used as an alternative to diesel by 100%. Everyone thinks so. So, I have asked the industry, can your diesel engines go on with isobutanol? Now, they are experimenting on this,” he said.

As the push for cleaner alternatives gains momentum in the off-highway sector, construction equipment manufacturers are exploring various fuel options. JCB India has developed a hydrogen-powered machine, while SANY India and Schwing Stetter are working on electric powertrains. At the same time, global component suppliers such as Germany’s ZF Group are expanding their construction equipment operations in India, with an emphasis on fuel-agnostic technologies.

Gadkari acknowledged that some in the industry are moving towards electric solutions, while emphasizing the need for multiple alternatives given India’s reliance on fossil fuel imports. “Some people are doing it on electricity…The import of fossil fuel in 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.”

Diesel makes up around 40% of India’s total crude oil consumption. In 2024–25, diesel consumption increased by 2% to 91.4 million tonnes as per the Petroleum Planning and Analysis Cell (PPAC). For 2025–26, PPAC projected diesel use to rise by 3% to 94.1 million tonnes.

The Road Minister said he has asked his department to take the discussion forward. “I have already told our secretary about calling for a meeting of construction equipment people.”

India is the third-largest construction equipment market in the world. According to data from the Indian Construction Equipment Manufacturers’ Association (ICEMA), the industry grew by just 3% in 2024–25, with total sales reaching 1.40 lakh units. Domestic sales rose 2.7% to 1.26 lakh units, while exports climbed 10% to 13,230 units. 

Isobutanol for Agricultural Equipment

Gadkari also spoke about the use of alternative fuels in the agriculture sector, particularly for tractors and harvesters. He said, “Tractors and harvesters also run on diesel. We are trying to bring ethanol and isobutanol in tractor engines.”

The government is encouraging innovation in this space. "Some people come after doing some experiments. So we are encouraging them,” Gadkari said.

Autocar Professional recently reported how electric tractors remain outside the scope of key government schemes like FAME and PM-eDrive. While legacy manufacturers have developed electric tractors and are selling them in global markets, they are yet to launch them in India. Meanwhile, Indian startups have already entered the space, focusing on segments like biowaste management other than agriculture.

India’s broader biofuel roadmap includes 20% ethanol blending in petrol, with room to go beyond, and a 5% biodiesel blending target by 2030. This policy push aims to reduce fossil fuel emissions and imports and increase income for farmers.

The Road Minister also pointed out that the choice of fuel depends on the local context. “Availability of raw materials and fuel costs have to be seen from country to country. Now, in some countries, fossil fuel is available at a much cheaper rate. They do not need to think about alternative fuel. But it is a big problem for us,” he said.