India approves National Policy on bio-fuels
Sunday, 27 December 2009
NEW DELHI, Dec 26 (Commodity Online): India Government has approved the National Policy on Bio-fuels. The Indian approach to bio-fuels is based solely on non-food feedstocks to be raised on degraded or wastelands that are not suited to agriculture, thus avoiding a possible conflict of fuel vs. food security
Bio-fuels provide a strategic advantage to promote sustainable development and to supplement conventional energy sources in meeting the rapidly increasing requirements for transportation fuels associated with high economic growth, as well as in meeting the energy needs of India's vast rural population. Bio-fuels can increasingly satisfy these energy needs in an environmentally benign and cost-effective manner while reducing dependence on import of fossil fuels and thereby providing a higher degree of National Energy Security.
The policy envisages setting up of a National Biofuel Coordination Committee and a Biofuel Steering Committee which hasbeen approved by Cabinet. The Policy endeavors to facilitate and bring about optimal development and utilisation of indigenous biomass feedstocks for production of bio-fuels.
The salient features of the National Policy on Bio-fuels are:-
Bio-diesel production will be taken up from non-edible oil seeds in waste /degraded / marginal lands.
An indicative target of 20 per cent blending of bio-fuels, both for bio-diesel and bio-ethanol, by 2017 has been proposed.
Minimum Support Price (MSP) for non-edible oil seeds would be announced with periodic revision to provide fair price to the growers.
Minimum Purchase Price (MPP) for purchase of bio-ethanol and bio-diesel would be announced with periodic revision.
Major thrust will be given to research, development and demonstration with focus on plantations, processing and production of bio-fuels, including Second Generation Bio-fuels.
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.
A National Biofuel Coordination Committee, headed by the Prime Minister, will be set up to provide policy guidance and coordination.
Bio-fuels provide a strategic advantage to promote sustainable development and to supplement conventional energy sources in meeting the rapidly increasing requirements for transportation fuels associated with high economic growth, as well as in meeting the energy needs of India's vast rural population. Bio-fuels can increasingly satisfy these energy needs in an environmentally benign and cost-effective manner while reducing dependence on import of fossil fuels and thereby providing a higher degree of National Energy Security.
The policy envisages setting up of a National Biofuel Coordination Committee and a Biofuel Steering Committee which hasbeen approved by Cabinet. The Policy endeavors to facilitate and bring about optimal development and utilisation of indigenous biomass feedstocks for production of bio-fuels.
The salient features of the National Policy on Bio-fuels are:-
Bio-diesel production will be taken up from non-edible oil seeds in waste /degraded / marginal lands.
An indicative target of 20 per cent blending of bio-fuels, both for bio-diesel and bio-ethanol, by 2017 has been proposed.
Minimum Support Price (MSP) for non-edible oil seeds would be announced with periodic revision to provide fair price to the growers.
Minimum Purchase Price (MPP) for purchase of bio-ethanol and bio-diesel would be announced with periodic revision.
Major thrust will be given to research, development and demonstration with focus on plantations, processing and production of bio-fuels, including Second Generation Bio-fuels.
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.
A National Biofuel Coordination Committee, headed by the Prime Minister, will be set up to provide policy guidance and coordination.