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Contractors to incur higher penalties for subpar roads: Nitin Gadkari

Byadmin

Aug 9, 2025


Senior BJP leader and Union Minister Nitin Gadkari, a guest at The Hindu MIND event, speaks to Sandeep Phukan and Jagriti Chandra about road infrastructure, Maharashtra politics, and national issues. Edited excerpts:


There have been complaints about rising toll taxes on our national highways. Last month, you introduced an annual ₹3,000 FASTag pass for passenger vehicles. Do you think the scheme addresses the common man’s concerns?


Four-wheelers comprise 80% of the highway traffic, including commercial and non-commercial vehicles. In the new policy, we are offering an annual pass that brings the average toll tax down to ₹15 per toll (booth), which is negligible. We have made it convenient for the common man. If you want good services, you’ll have to pay for them.

The Mumbai-Pune Expressway, which was the first access-controlled highway, brought down the travel time from nine to two hours. So, there are also savings in terms of fuel. Such highways also help us in reducing our dependence on fossil fuel imports. It is a win-win situation for the users, and the FASTag policy addresses their questions.


Since you mentioned the Mumbai-Pune Expressway, what is the status of the Delhi-Mumbai Expressway, which was to be ready by December 2025? And do you think this is how India will move ahead in future?


India’s logistics cost, which currently stands at 16% (of the GDP), is higher than China’s 8% and the U.S.’s 12%. Research by IIT Kanpur, IIT Chennai, and IIM Bangalore shows that we have successfully reduced our logistics costs by 6-10% so far. With upcoming projects like the Delhi-Katra and Delhi-Dehradun Expressways, I’m confident that we will bring the cost down to a single-digit figure of 9% by December this year. It will enhance India’s competitiveness in global markets through improved port connectivity, stimulate capital investment, boost industry and trade, increase employment, and strengthen the economy. These benefits are a direct result of high-quality road infrastructure development.


You talk about paying more for better quality. Recently, we came across an incident in Kerala where a man stood at a toll booth for 10 hours demanding better roads. Social media users have raised questions about accountability when roads are washed away in heavy rains.


As the Minister for Road Transport and Highways, I often find that when people see a damaged road in Delhi, they blame me. Yet I also receive credit for projects like the Samruddhi Mahamarg in Maharashtra, built under Chief Minister Devendra Fadnavis. So, I experience both praise and criticism because when people think of roads, they associate them with me. The public generally acknowledges that NHAI (National Highways Authority of India) roads are of good quality. Take the Mumbai-Pune Expressway, which has stood strong for 27 years, built with concrete and rarely complained about.

To ensure quality, we have extended the defect liability period for contractors from five to 10 years. If there are deliberate faults, we take strict action, including seizing bank and performance guarantees, blacklisting contractors, and conducting investigations. However, there are genuine challenges too, like damage caused by floods and cloudbursts in the Himalayas.

We have invested ₹40,000 crore to identify hazardous spots nationwide and mandated the use of pre-cast drains. We are initiating schemes to pinpoint areas vulnerable to landslides, flooding, and waterlogging. We are experimenting with innovative materials such as rubber, plastic, and recycled waste in road construction.

Mistakes can happen, but our commitment is to improve continuously.

After observing some road collapses, we decided against building tunnels in certain areas, prioritising safety over cost. While this means spending more money, saving lives is paramount. Gradually, we are adopting new approaches and making steady progress towards safer roads.


These days, there is a huge debate about blending 20% ethanol with petrol. Vehicle owners are reporting a drop in mileage, as high as 30% in some cases. There are also concerns over increased maintenance.


Today, we spend ₹22 lakh crore on importing fossil fuels, such as petrol and diesel, despite knowing their impact on pollution. But our automobile industry is growing, and so are our imports. At this juncture, should we not seek to become self-reliant? Should our imports not come down? This is why we are investing in alternative fuels and biofuels.

In 2001, when I was a Minister in Maharashtra and the late Atal Bihari Vajpayee was the Prime Minister, I was part of a delegation to Brazil, where ethanol was introduced (in gasoline) even before India got Independence. Soon after, we introduced 5% ethanol blending into petrol, and the automobile industry reported damage to metal components due to the presence of water in ethanol. Following this, the Pune-based ARAI (Automotive Research Association of India) made some design tweaks in vehicles.

The negative campaign regarding ethanol blending these days is a deliberate misinformation drive because the blending leads to a drop in oil imports, causing losses to some. The truth is that ethanol blending benefits the rural economy. When we used corn to produce ethanol, the market price rose from ₹1,200 to ₹2,600, resulting in a threefold increase in corn cultivation in Bihar and Uttar Pradesh. Farmers also benefited from the higher value.

Yes, there is a drop in calorific value of the E20 blend [gasoline mixed with 20% ethanol] and its mileage is lower. However, there are benefits for the country from import cuts, particularly for the farming community.

Today, farmers are not just food providers, but also energy, fuel, aviation fuel, and bitumen providers. The ARAI has tested older vehicles (which are not E20-compliant) over a distance of 1 lakh km and not found any concerns (regarding their performance).


There have been allegations that you are promoting ethanol because your family has invested in the sugar industry.


I established ethanol factories in 2004, when the sector was virtually non-existent. My factories make an annual loss of ₹30 crore. My family wants me to shut them down. These factories produce only 1.3 lakh litres of ethanol, which is a relatively negligible quantity. Vajpayeeji started this mission. Did he do it at my behest? These attacks are laughable. There is a group behind it. This may even be a political conspiracy. Such things are common in politics.


Will fuel costs reduce due to cheaper ethanol?


Determining petrol prices is not my domain. I use a flex-fuel vehicle [designed to run on ethanol blends] that runs entirely on ethanol, bringing down the overall fuel cost per litre to around ₹25-₹30 as compared to ₹110 per litre for petrol-only vehicles and benefit from the cost savings. There will always be some difficulties in the beginning when we introduce new technologies. But costs come down as you scale up.


What will be the impact of U.S. President Donald Trump’s tariffs on the automobile industry? Does the government have a contingency plan?


This is not a subject related to my Ministry. But our automobile exports are not confined to the U.S. Our country’s automobile industry is making rapid progress. We have launched an electric Mercedes here. Flex engines of Toyota are being exported everywhere from India. Maruti Suzuki is exporting, too. The two-wheeler industry is exporting 50% (of its production) to countries like South Africa and Sri Lanka. The decision on the response to the U.S. tariffs will be taken by the Finance or Commerce Ministry. But we are confident that our exports will keep growing.


How do you respond to questions raised by Rahul Gandhi over the fairness of the electoral system. Specifically about how the three formidable Maha Vikas Aghadi parties that decisively won most Lok Sabha seats in Maharashtra in 2024 ‘simply evaporated’ in the Assembly election within five months.


Wins and losses in elections are part of democracy and must be accepted, not politicised. They (Opposition parties) have now taken the matter before the Supreme Court…


Will the coming together of the Thackeray cousins have an impact in Maharashtra?


First of all, I have left Maharashtra politics since moving to national politics. (Shiv Sena founder) Balasaheb (Thackeray) had personal affection for me, and I have very good ties with the family, including (MNS chief) Raj (Thackeray) and (Shiv Sena (UBT) chief) Uddhav (Thackeray). Personally, I’m glad that they are reuniting. However, I leave the issue of politics to them.


Your party has now been at the Centre for 11 years. Is there any clarity on when the BJP will get its new president?


First, what the Congress was unable to accomplish in 60 years, the country has successfully achieved under Prime Minister Narendra Modi’s leadership.

As far as the second part of your question is concerned, let me say that I’m not the party president. Please invite Naddaji (current BJP president J.P. Nadda) to answer the question.


Today, there are no cars cheaper than ₹8 lakh. Is the expansion of our automotive sector only aimed at the rich?


The automobile sector is highly competitive and continues to experience robust growth. Electric buses are growing at an impressive rate of 22%, and current demand already outstrips supply. The export of cars and scooters is also on the rise. There is a shift from budget cars to SUVs, with yesterday’s lower middle class comprising the middle class today. Every family wants a better car. Consumer preferences continue to evolve in the market-driven economy, where buyers freely choose their preferred car type, fuel, and brand.


Consumers in Brazil have the choice between different blends of fuel, such as E5, E20 or full ethanol. Should we not adopt a similar approach?


Brazil started its transition to ethanol 80 years ago, whereas we embarked on this journey in 2001. It will take 8-10 years to stabilise. While we have engines ready (for some biofuels), we don’t have refuelling stations for them. Currently, we are developing testing, quality, and emission norms to address various challenges as we move forward.

By admin