Central Govt. Launches National Biofuel Policy 2018 Rs. 1 Trillion Investment

Published Date - 10 March 2018 03:12:12 Updated Date - 10 March 2018 03:13:21

As per the latest updates, the Central government has announced to implement the Biofuel policy for the fiscal year 2018. The new policy has been announced with an aim to help use sustainable fuel for development nationwide. As per the updates the government aims at making use of advanced biofuels for second generation. Under the new initiative the government aims at making use of and promoting usage of biofuels like ethanol.

Central Govt. will design this new national policy on biofuels in order to reduce carbon emissions by 40% till FY 2030. To achieve 40% reduction in Carbon Emission, it is necessary to assist non-food feedstock-based advanced biofuels and to develop these as industry of scale.

Oil Marketing Companies can sell Ethanol Blending Programme (EBP) with ethanol percentage upto 10% under Ethanol Policy India. In Union Budget 2018-19, central govt. has also focused on Waste to Wealth conversion projects which involves launch of Gobar Dhan Scheme to produce bio CNG.


Implementation details

  • The central government has already stated that for implementation of the above mentioned technology it aims at investing over Rs 1 crore for better implementation of the policy.
  • As per latest updates collected from the central government the main aim of the government is to help implement the policy of Biofuels by 2030.


National Biofuel Policy 2018 – Key Features

The important features and highlights of this new national policy on biofuels are as follows:-

  • This new national policy on biofuels will shift the focus from first generation (1G) biofuels which are based on sugar. 1G biofuels are made from molasses and vegetable oils and thus are polluting in nature.
  • Subsequently, Biofuel Policy India will enable utilization of other kinds of feedstock like cellulose based and lignocellulose materials. Accordingly, it will lead to “Waste to Wealth” economy.
  • New National Biofuel Policy 2018 will ensure cost-effective and pollution free import substitute of polluting fossil fuels.
  • Accordingly, lignocellulosic biomass / woody crops, agricultural residues and municipal waste gets converted to advanced 2G biofuels.
  • At present, level of ethanol blending in petrol is 2.5 per cent. Various Oil Marketing Companies (OMCs) are running Ethanol Blending Programme (EBP). Moreover, govt. will authorize OMCs to sell EBP with ethanol percentage upto 10% under Ethanol Policy India.
  • National Biofuel Policy 2018 will eliminate the problem of land use and other issues related to food security used in production of 1G biofuels.

Furthermore, govt. will implement this National Biofuel Policy 2018 in a mission mode to make our environment pollution free.

National Biofuel Policy 2018 – Incentives

Central govt. will provide incentives to all state-run oil marketing companies. These OMCs has made an agreement of long-term offtake of 2G ethanol under Biofuel Policy India. For this reason, OMCs are assuring suppliers for 15-year offtake contracts. Indian Oil Corporation (IOC) has recently signed an agreement with Punjab government. Under this agreement, IOC will establish various CNG plants in Punjab in upcoming 5 years.

In addition to this, OMCs are going to set up 12 advanced biofuel refineries in several states. IOC is currently operating 3 biofuel plants and plans to increase its capacity from 100 tonnes to 1200 tonnes per day in next 2 years.


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