He said the government will try to introduce the changes in the next session of Parliament.
"There is a requirement to make changes in the law and bring it on par with international standards, which can enable us to permit cars that run on different fuels, especially bio-fuel.
"We will try to introduce the changes in the next session of Parliament. The government has already announced to make necessary changes in law for e-rickshaws that will give employment to over 2 lakh people," Gadkari said.
He was addressing delegates at a seminar organized by BJP's non-conventional energy cell at the party headquarters. Gadkari said suggestions would be sought from delegates before taking a policy decision is taken over the issue.
He said the ministry would also study automobile laws in the United States, Canada, Brazil and Germany before making any change.
Gadkari, who also holds additional charge of rural development ministry, said there was a need to look for alternative sources of fuel as the country imports fuel and edible oil worth more than Rs 6 lakh crore and Rs 800 crore respectively.
"There is a need to diversify agriculture and make better use of waste land in villages. Ethanol could be made from different sources, especially from biomass of cotton straw and sugarcane. But biomass can also be used to produce bio-digester CNG.
"We will try to see if a biodigester can be set up in every village. This can enable people to use bio-gas for different activities," Gadkari said.