The government is considering a proposal to facilitate manufacturers of biodiesel to directly sell the fuel to bulk consumers such as railways.
New and Renewable Energy Minister Piyush Goyal today also informed the Lok Sabha that a bulk of biodiesel produced in the country is exported.
"A proposal is under consideration to amend the provisions of National Policy on Biofuels and the Motor spirit and High Speed Diesel Control Order to facilitate sale of biodiesel by its manufacturers to the bulk consumers like railways," the Minister said in a written reply.
The national policy on biofuels stipulates that the responsibility of storage, distribution and marketing of biofuels would rest with oil marketing companies.
Besides, the policy states that the export of biofuels would only be permitted after meeting the domestic requirements.
"Further, the Motor spirit and High Speed Diesel Control Order also stipulates that no person other than dealer or the oil company shall engage in the business of selling these products," Goyal said.
According to the Minister, no biodiesel has been procured by oil marketing companies in the last three years while around 92,000 tonnes biodiesel were exported during the same period.
