Nitin Gadkari Urges Reduction in Diesel Use in Construction Equipment

Key Highlights:

• India's construction equipment sector consumes 400 crore liters of diesel annually, says Nitin Gadkari.
• The government targets 20% ethanol blending and 5% biodiesel use by 2030.
• India aims for net-zero emissions by 2070 to cut greenhouse gas output.
• Sector growth may slow to 4-6% in FY25 from 27% in FY24.
• SANY India projects Rs 30,000 crore revenue by 2030, boosted by urbanization and government efforts.

India's construction equipment sector consumes a significant amount of diesel, which needs to change if the country is to meet its economic goals, said Nitin Gadkari, Minister of Road Transport and Highways. Speaking at the Baja SaeIndia event 2025, he emphasized the urgency of reducing fossil fuel dependency across sectors, including construction and agriculture.

India's Net Zero Target by 2070

As the third-largest importer of crude oil and a major greenhouse gas emitter, India has set an ambitious net zero target for 2070. Part of this effort includes the government’s focus on biofuels, with a goal of achieving 5% biodiesel blending by 2030 and increasing ethanol blending with petrol beyond the current 20%.

Push for Alternative Fuels

The government promotes ethanol and methanol usage to reduce reliance on imported fossil fuels, enhance energy security, and support farmers' incomes. Gadkari highlighted that construction and mining operations alone consume 400 crore liters of diesel annually, posing challenges for both the economy and environmental sustainability.

Slower Growth in Construction Equipment Sector

According to CRISIL, India’s construction equipment market is expected to grow by 4-6% in FY25, reaching around ₹83,000 crore. This marks a slowdown compared to the 27% growth seen in FY24, which was driven by strong demand in roads, railways, and mining.

Impact of New Emission Norms

While sales volumes are expected to decline, revenue in FY25 may increase due to rising prices following the implementation of new emission norms.

Industry Outlook

Leading manufacturers like SANY India remain optimistic. Sanjay Saxena, COO of SANY India, recently shared plans to achieve ₹30,000 crore in revenue by 2030, supported by government investments and urbanization.

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CMV360 Says

The construction equipment sector depends heavily on diesel. This affects India’s energy goals and economy. Biofuel blending and alternative energy are good steps forward. The industry needs to adopt these changes faster. Slower growth in FY25 shows the need for balanced policies to support both the environment and growth.