National Policy on Biofuel

The National Policy on Biofuel endeavors to facilitate and bring about optimal development and utilization of indigenous biomass feedstocks for production of bio-fuels .The Policy aims at mainstreaming of biofuels and, therefore, envisions a central role for it in the energy and transportation sectors of the country in coming decades.

The salient features of the National Policy on Bio-fuels  are:-

1) Bio-diesel production will be taken up from non-edible oil seeds in waste /degraded / marginal lands.

2)An indicative target of 20% blending of bio-fuels, both for bio-diesel and bio-ethanol, by 2017 has been proposed.

3)Minimum Support Price (MSP) for non-edible oil seeds would be announced with periodic revision to provide fair price to the growers.

4) Minimum Purchase Price (MPP) for purchase of bio-ethanol and bio-diesel would be announced with periodic revision.

5)Major thrust will be given to capacity building, training, research, development and demonstration with focus on plantations, processing and production of bio-fuels, including Second Generation Bio-fuels.

6) Financial incentives, including subsidies and grants, may be considered for second generation bio-fuels. If it becomes necessary, a National Bio-fuel Fund could be considered.

7) A National Biofuel Coordination Committee, headed by the Prime Minister, has been set up to provide policy guidance and coordination.

8) A Biofuel Steering Committee, chaired by Cabinet Secretary, has been be set up to oversee implementation of the Policy.

9) International scientific and technical cooperation in the area of biofuel production, conversion and utilization will be established in accordance with national priorities and socio-economic development strategies and goals.

10) Import of  biofuels would only be permitted to the extent necessary and export of biofuels  would only be permitted  after meeting  the domestic requirements . Decisions related to export and import will be  decided  by  the National Biofuel Coordination Committee .

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