The national biofuel policy, aimed at facilitating development of indigenous biomass feedstock for production of biofuels, has been cleared by the Cabinet. The draft of the policy was prepared by the ministry of new and renewable energy (MNRE), the coordinating ministry for biofuel development, last year.
Setting up of a National Biofuel Coordination Committee to provide policy guidance has also been approved. It is to be headed by the prime minister. A Biofuel Steering Committee chaired by the cabinet secretary will also be set up to oversee the implementation of the policy.
“The Indian approach to biofuels is based solely on non-food feedstock to be raised on degraded or waste lands that are not suitable for agriculture, thus avoiding a possible conflict of fuel versus food security,” a statement issued by MNRE read.
Promotion of biofuels could meet India’s energy needs in an environmentally-sustainable manner, while reducing its import dependence on fossil fuels.
The policy has proposed an indicative target of 20 per cent blending of biofuels — both biodiesel and bioethanol — by 2017. The government had already made 10 per cent ethanol blending with petrol effective from October last year.
The biofuel policy has also proposed financial incentives — including subsidies and grants — for second generation biofuels like cellulosic ethanol and algal biodiesel. “If it becomes necessary, a National Biofuel Fund could be considered,” it says.
The policy also mentions that a Minimum Support Price (MSP) for non-edible oilseeds would be announced with periodic revision to provide fair price to the growers. A Minimum Purchase Price (MPP) for purchase of bioethanol and biodiesel would also be announced with periodic revision.
