He said the government's approach is "import substitute, pollution free and cost effective" alternative to crude oil and the prime minister has specially given instructions to the Cabinet Secretary and Principal Adviser to work in this direction including on coal gasification and making methanol from that.
"The problem which is related to our economy is that our import bill is 20 per cent of our capital cost...it is a big economic challenge for the country. ..This is the time we have to find out some solution," the minister said stressing that the automobile sector is one sector which provides good revenue to the government with maximum employment potential.
Promising that the problems of the automobile sector will be resolved, Gadkari said the intention of the government was not to create obstacles for them.
Citing popular brands like Toyota and Hyundai, he said when these can manufacture flexi engines in Brazil why can't they do so in India where consumers can choose from various options including the alternative fuel.
The road, transport and highways minister said India is the fastest growing economy and by 2030 it is expected to become the third largest economy in the world.
Apart from crude oil imports, another major problem faced by the economy is in the agriculture sector with surplus production of sugar, rice and wheat, he said adding that there is a need for diversification of agriculture and forest towards producing alternative fuel power and energy.
About highways sector he said the road construction pace has reached 30 km a day and the government was constructing 22 new express highways including Rs 10,000 crore Dwarka express highway.
"Meerut Express Highway being constructed at a cost of Rs 9,000 crore is going to be complete before March...My ministry is spending Rs 50,000 crore for road construction around Delhi," he said.
Besides, he said 60 per cent of the contracts for Rs one lakh crore Delhi-Mumbai express highway on a new alignment passing through tribal areas have already been awarded and it would prove to be a growth engine for the country.
On policy related to scrapping of old vehicles he said it is in final stages and India will become the biggest automobile hub after the policy comes into force given availability of cheap labour, skilled manpower and technology.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.