Oil Minister Dharmendra Pradhan launched sale of diesel blended with 5 per cent non-edible oil extracted from palm stearin, at four cities of Delhi, Vishakhapatnam, Vijayawada and Haldia. The blended fuel has been named B5.
"We want to extend the programme to all over the country but such a move will depend on the availability of bio-diesel," he told reporters here.
Use of bio-diesel will not only help cut carbon emissions but will also cut reliance on imports, on which the nation is 80 per cent dependent to meet is oil needs.
"For a nationwide rollout, we will need 3.5 million tonne of bio-diesel but current production capacity in the country is only 1 million tonne. So there is a mismatch, and availability will decide on when the programme will spread to other parts," he said.
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A Bio-diesel Purchase Policy was announced in January 2006 to encourage production of bio-diesel in the country for blending it with diesel with the objective of increasing energy security and meeting other emission and environment objectives. But the scheme never took off.
Pradhan said the oil companies will this month float a tender to procure bio-diesel and rates will be fixed as per bids received.
He said blending of bio-diesel up to 5 per cent in diesel does not requirement any technological interventions at both the vehicle and diesel manufacturing.
On similar lines, a programme for 5 per cent blending of sugarcane-extracted ethanol in petrol is currently on. "But the average is only 3 per cent due to availability issues," he said.
In 1900 when he demonstrated the engine running on Ground nut oil in Paris he made a prophetic statement which reads, "My Engine today is running on Diesel but a day will come when all the fossil fuels be over, but my engine will continue to run".