Sops for bio-fuel use

The Ministry of Non-Conventional and Renewable Energy has sought excise concessions on bio-fuels as well as equipment used to produce it. The aim, officials say, is to popularise use of bio-fuels for vehicles.

The ministry aims to ensure that at least 5 per cent passenger and commercial vehicles run on bio-fuels by 2012. "We have sought excise duty reduction on all bio-fuels and its components used in all vehicles. Incentives for development of technology for running petrol engines on bio-fuels have also been sought," a ministry official said.

The bio-fuel policy, expected in a few months, lays thrust on development of technologies for ethanol-blended petrol and production of bio-diesel from jatropa seeds.