CII has asked Government to make mixing of biofuels in petrol and diesel mandatory to cut the country's spiralling oil import bill.
"A mandate should be put in place... The policy which proposes five per cent blending of ethanol in petrol is still not stabilised and we need a proper framework to do so," said CII National Committee on Biofuels Chairman Pramod Choudhary.
Presently, petrol doped with 5 per cent ethanol extracted from sugarcane was being sold all over the country except in J&K, northeastern states and island territories and the quantity is proposed to be raised to 10 per cent from October.
Besides, government had in October 2005 announced a biodiesel policy under which oil companies were to mix five per cent of non-edible oil in diesel, but the companies have not yet been able to purchase bio-diesel.
Choudhary said to make the biofuel policy a success, the government should make it mandatory for oil companies to blend 10 per cent biodiesel.
Terming the policy as a 'prudent' one, he said concerns of food prices going up due to a focus on biofuel was nothing but propaganda by those not in favour of it.
"It is just propaganda in the hands of people who do not want the biofuel policy to come into being. It is easy to pass on the buck but saying there is food inflation because of blending," Choudhary said.
Last month, a Group of Ministers headed by Agriculture Minister Sharad Pawar, decided to hike the amount of ethanol blended with petrol from 5 per cent which has been in effect since October last year, to 20 per cent by 2017.
