In an exclusive conversation with Moneycontrol’s Shweta Punj, Union Minister for Roads, Highways and Transport Nitin Gadkari listed out his list of priorities for the year.

Among them, he said that the Mumbai-Delhi expressway will be complete by December, and clarified that while the government is working on bringing technologies for sustainable infrastructure development, the 10 percent cess GST on diesel cars is not under consideration.

He also said that the Biofuels Alliance, an India-led mission for countries to adopt biofuels, would reduce pollution in India.

Edited excerpts:

India has just concluded its G20 presidency. We have had important developments coming out of this presidency. We have the economic corridor connecting India to the Middle East and Europe, then you have the Biofuels Alliance. What does India stand to gain from these?

Nitin Gadkari: I feel that this G20 summit was very historic and a great achievement for the government under the leadership of Prime Minister Modi Ji. This is the first time India is well recognized, and well respected all over the world.

Two important things, this highway we are going to construct starting from India to Eastern Europe is to be a great thing. And the second important thing is the Biofuel Alliance between the 20 countries.

Because of fossil fuels, the whole world is facing the problem of air pollution. Now 40 percent of the air pollution is because of the road sector, and transport sector, and this is the time that we need to concentrate on alternative fuels and biofuel.

And we have got the technology. If given economic priority, we can give the world this technology and this vision by which we can make the world free from air pollution.

That is the reason that our Biofuel Alliance is going to create cooperation, coordination, and communication between stakeholders.

Also, there is a transformation as far as the research and development regarding different types of research-led biofuel standards. And there will be understanding between the countries which is going to help to create this industry, particularly green hydrogen, which is the fuel of the future.

We have conducted a lot of experiments on green hydrogen. We have a Green Hydrogen Mission. At the same time, ethanol. We have the first world flex engine ethanol-fuelled car with Euro IV norms.

Then we have other alternative fuels, electric, methanol, CNG, LNG, and now also bio-aviation fuel from methanol. That is to be a great thing where the aviation industry will use bio-aviation fuel, adding it to their fuel. It can be a great achievement for the country.

All these technologies are in different phases of testing by different stakeholders, research organisations, standards bureaus. This Biofuel Alliance will be helpful for that.

Any timelines you’re looking at? By when do you think the aviation industry will switch to green fuel?

Nitin Gadkari: This is the start of the process. I feel that it is good to create an understanding between the stakeholders. And some good things in one country can be adopted by another country.

For the first time, because of this agreement, cooperation, coordination and communication between stakeholders regarding the biofuel is going to start.

That is a great achievement as far as pollution is concerned, and as far as the way in which we need to reduce our import bill. The import of fossil fuels comes to Rs 16 lakh crore.

Pollution is a big problem. The economy is a big problem. And if we are to be Atmanirbhar Bharat, we need to reduce our imports.

MC Exclusive | G20 Biofuel Alliance will facilitate green technology transfer across countries: Nitin Gadkari

Any specific countries that you’re hoping will play a more prominent role in this area?

Nitin Gadkari: Actually, Brazil is a country which is already in the leadership position in bioethanol. For the last 40 years, they have been blending ethanol with petrol.

In their Air Force, they already are at 22% ethanol blending. So we can take the technology from them and we can start in our air force, our aviation engines. These are the advantages of this alliance. At the same time, from ethanol, they make biodegradable plastic.

There are a lot of new technologies they have. The US has got the technology for making ethanol from corn and they also have a lot of knowhow that can be useful for us.

We have got a technology that produces bioCNG and bioLNG from rice stalks and that is where we can help them. At the same time, we are in the process of accepting a new technology, green hydrogen.

We can make green hydrogen from sewage water. We can segregate metal, glass and plastic from municipal waste and with organic waste, we can get methane. And from that methane, using a biodigester, we can get hydrogen, green hydrogen or bioCNG or bioLNG.

We are also working on value addition of carbon dioxide, which can be a great thing for the world. So there are different models and practices in the technology related with biofuel and alternative energy. Alternative fuel ultimately is going to create a win-win situation for all stakeholders.

Transport is going to play a very crucial role in this anti-pollution drive. Where are we on that journey when it comes to electric cars? Tesla wants to invest in the country. What are the incentives that you are offering for automakers?

Nitin Gadkari: When we started out with electric vehicles (EVs), the lithium ion battery was really costly and the rate was $120 per kilowatt per hour, but now it comes to $115. And in due course, it will come down to $100.

We are just going into tender for 10,000 electric buses. So there is a huge potential for that and I feel that it is the time now we are expecting a 300 percent rise in EVs.

So automakers are interested in making…

Nitin Gadkari: Yes, there is a waiting list.

But affordability is an issue.

Nitin Gadkari: No. Suppose you have a petrol car. Your expenditure is Rs 30,000 per month on petrol.

For an EV, it comes to Rs 2,000. We are planning an electric bus service from Delhi to Jaipur, by which we want to reduce the cost of transport over diesel buses by 30 percent, with good comfort, business class and everything like the airlines offer. We can give that service to the people.

You are the longest-serving roads and highways minister in the country, nine years. We are one year away from the general election. What are the primary projects for you right now?

Nitin Gadkari: Actually, I never think about the election. One thing is absolutely true, that every political leader and political party needs support from the people.

We believe that we are doing the best we can do for the people, for society and for the country, that is 100 percent our responsibility.

I always believe that, I tell people that politics is the instrument of socio economics. I am a political leader. I have good support from the people, even the opposition parties support me often. So I am confident of doing a good job in the interest of the people.

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Any projects that you really want to deliver before…

Nitin Gadkari: We have a lot of projects. Every project is important. The Zoji-la Tunnel we are making in Kargil is important for Ladkah, Leh and Kashmir. If we are making the Atal Tunnel in Himachal Pradesh, it is to be useful for Himachal Pradesh.

We are making 18 tunnels from Jammu to Srinagar, where 14 tunnels are already complete. It is useful for Jammu and Kashmir. We are connecting Kashmir to Kanyakumari starting from Manali, Rohtang Pass, coming to Atal Tunnel, the five tunnels we are making, Zoji-la.

Then we come to Srinagar, then the Srinagar to Jammu highway. Before Katra, we take the Delhi-Katra highway to Delhi. And Delhi to Surat, where we are making a new green road. From Surat to Nashik, Nashik to Ahmednagar, Ahmednagar to Solapur, Solapur to Kannur.

Then you don’t need to go via Mumbai and Pune all the way to the south. After Kannur, we are going to connect to Mangalore, Bangalore, Kochi, Hyderabad, Trivandrum, Kanyakumari, Chennai—all of south India. It is going to reduce the distance between Delhi and Chennai by 320 km.

What are the timelines on this?

Nitin Gadkari: I feel that 70 to 80 percent of the project will be completed before the end of December, because for the Mumbai-Delhi expressway, we have completed the work up to Vadodara already.

We have already invited the prime minister to open another section from going up to Ratlam. It is in the process.

MC Exclusive I Delhi-Mumbai express highway will be completed by December: Nitin Gadkari

So by December this year, you are saying we can travel from Delhi to Chennai by road in less time?

Nitin Gadkari: No, 70-80 percent, because it is already a part of Delhi-Mumbai Express Highway, and before the end of December, we want to complete the Delhi-Mumbai Express Highway. So up to Surat, it will be complete.

Then is Surat, where there are 12 packages. Of the six packages up to Solapur, Kannur, work has started. There was some environmental problems from Surat to Nashik that have now been resolved.

When building new roads and highways, there have been concerns raised especially in the hill states. We saw what happened in Uttarakhand, Himachal Pradesh. How are we ensuring that sustainability goes hand in hand as India develops?

Nitin Gadkari: Actually, we have taken lots of decisions regarding the ecology and environment. We are using 50 percent of the waste tyre rubber powder in making the roads. We have already used 30 lakh tonnes of municipal garbage in the Ahmedabad tunnel.

Very soon we will launch a policy for using municipal waste in road construction. We are using waste, particularly steel waste, in road construction.

We are using aggregate waste that is not useful anywhere, and we have transplanted 68,000 trees just in Aurangabad near Paithan. We have just transplanted 51 trees that are 100 years old successfully and we have already planted 3 crore 60 lakh trees already.

What about roads in ecologically fragile regions?

Nitin Gadkari: There are some problems, frankly speaking. From recent experience, we need to have new technologies. We are taking advice on world standards, technical advice. In Himachal Pradesh, it was a very bad situation.

This is because the Himalayas are very fragile. Because of heavy rains, it became a big problem. In Uttarakhand also, we are making tunnels.

But I admit that this is the time that we have to take consultancy from the global experts and maintain the safety of the people, that is very important.

We are talking to Switzerland for technology.

I want to talk to you about green fuel. I mentioned Tesla wanting to invest in India. Also, automakers switching to providing the choice of all-electric vehicles. Any specific incentives that have been planned, any production-linked incentives (PLIs)?

Nitin Gadkari: The size of the automobile industry has tripled since the time I took charge as minister. This is an industry that has up till now created 45,0,00,000 jobs.

This is the industry that is giving maximum GST to the state and central governments. This is the industry contributing 6 percent growth in GDP. In our GDP, 40 percent is from the automobile sector.

This is the industry that earned export income of Rs 4 lakh crores. When I took charge, our number was 70. The first is the US, second China, third Japan. We just surpassed Japan two months before and we are now third.

As the largest auto market?

Nitin Gadkari: Yes, and we want to make India the number one automobile manufacturing hub in the world.

So you are saying that these companies have enough money to invest on their own and they don’t need additional incentives?

Nitin Gadkari: They have. You remember the example of the mobile phone. When I bought an Erickson phone in Mumbai, the cost was Rs 1,23,000. Now a mobile is available for Rs 3,000-4,000.

So when volumes increase, ultimately the cost is going to reduce. Now apart from the lithium ion battery, we also have successful technologies like sodium ion, aluminum ion and the like.

Recently in Jammu, we discovered large reserves of lithium, estimated at 6 percent of the world’s stock. We import 1,200 tonnes of lithium per year. By fast-tracking the project, if we can get the lithium from Jammu, we will be more competitive.

There was some controversy around the EV policy. Startups/EV players were complaining that they’re not getting their incentives in time. Will the policy be revisited?

Nitin Gadkari: Actually, this is with the industry minister.

There is also talk of PLI for hydrogen dispensing stations. 

Nitin Gadkari: We tried that. We had a meeting with the heavy industry ministry and we are going to suggest that for the future, hydrogen is very important.

But we don’t have the technology to make hydrogen fuelling stations yet. So this is the time that we need to have Make in India and Made in India technology. We need to encourage people for that.

When it comes to phasing out polluting cars, you mentioned diesel cars.

Nitin Gadkari: The scrapping policy is the most important policy. We are appealing to automobile manufacturers that if you can give some concessions to the people who submit the certificate of scrapping, it will be an added attraction.

We project an 18 percent jump in demand from this, to the benefit to the automobile industry. Moreover, recycled copper, steel, plastic, rubber and aluminium will reduce the cost of components by 30 percent.

You mentioned there was a clarification coming in on the news of levy of 10 percent cess above the goods and services tax (GST) on diesel cars.

Nitin Gadkari: In 2014, 48 percent of passenger vehicles were diesel vehicles, now it is 18 percent. But still, because the overall number of cars increased, the number of diesel vehicles has also risen. Diesel is hazardous to health and we are facing a serious problem of pollution.

So I request that they (the people) should take the decision and use alternative fuel and biofuel, electric, so that we can reduce pollution. But if you are not going to change, then I am in the mood to recommend it (the 10 percent cess) to the finance ministry.

But that was a statement to request people to adopt alternative fuels. I don’t have any intention to have a tax on diesel cars. According to some reports, pollution is cutting 10 years from people’s lives.

This is a very serious problem. That is why I am trying to convince them.

Any initiatives you have in mind for road safety? We have built these roads and highways, but there is a high incidence of accidents. Road safety is a big concern, whether it’s enforced or whether it is just spreading more awareness.

Nitin Gadkari: We have 5 lakh accidents a year, 1,50,000 deaths. Of this, 60 percent of the casualties are in the 18-31 age group. We are trying our best. Automobile engineering, road engineering—we are taking a lot of steps.

Now the Indian standard of crash-testing star rating will be launched. While we have taken these steps, we are also encouraging education related to road safety.

Then, enforcement—we have already passed the new Motor Vehicle Act. And regarding emergencies also, we are making a lot of services, including helicopter services to transport victims to hospitals.

What are the number of heliports in the pipeline?

Nitin Gadkari: We are making 670 across the country. So we are trying, but frankly speaking, we are not satisfied, seeing we are not able to reduce accidents because we need to change human behaviour. You have to obey the rules of the road. Somewhere we need cooperation from the people and we are even asking from the media, NGOs, social workers, universities and colleges to support all our missions, particularly on road safety.

MC Exclusive I Dwarka Expressway construction has not incurred cost overruns: Nitin Gadkari

The pace of road construction has gone down in the last two to three years by almost 10 percent. Any specific reason?  

Nitin Gadkari: Because of COVID, there were some problems, but now we are trying to progress fast.

We are encouraging BOT (build, operate, transfer) projects which I believe will increase the pace of road building.

I feel that by the end of March next year, our road construction record will be satisfying.

We have seen a lot of infrastructure companies that have gone bankrupt. They complain that margins are too thin. Is that something that you are addressing?

Nitin Gadkari: This is not the case. We have resolved the issues.

Today, developers are putting 20-30 percent less. At the time I took charge, there were 40-60 contractors. Today we have 450 contractors.

They are financially strong. Project delays are negligible. Every year we are giving contracts of more than Rs 3.5 lakh crore, Rs 4 lakh crore.

Let’s talk about cost overruns. The Dwarka Expressway (connecting Delhi and Gurugram) was in the news because of time and cost overruns.

Nitin Gadkari: No cost overrun was there. I’m telling you frankly.

The Dwarka Express under the Bharatmala project, according to the Comptroller and Auditor General of India, should cost Rs 18 crore. It comes to Rs 18.5 crore. We are a very transparent, corruption-free, time-bound, result-oriented and quality-conscious and corruption free setup.

Earlier, we would hear about problems with land acquisition. Are you still encountering such issues?

Nitin Gadkari: There are problems everywhere. It is a test of leadership. I always tell that there are some who convert problems into opportunities and there are some people who convert opportunities into problems.

Our environment minister, Bhupender Yadav and his ministry have been very cooperative and even state governments are very cooperative regarding land acquisition.

What is the one thing that is making you very bullish about India?

Nitin Gadkari: We have got the highest young talented engineering manpower in the world. That will be a great thing for India.

At the same time, we have good infrastructure, water, our transparent communication, international standards by which we are the fastest growing major economy in the world.

And I’m confident of the prime minister to make the Indian economy number the third largest in the world, from our current fifth position.