BioFuel : The Next Big Thing, On Way…

The biofuel industry remains among India’s most underdeveloped. Although there are many private players in this space, the industry has not reached its full potential due to the government’s low interest.

But things look to be changing…The 2018 National Policy on Biofuels, is one such government effort, with an aim to reduce carbon emission by 40%. This policy, if implemented properly, will cut oil imports by Rs 4,000 crore this year alone.

The policy is also keen to encourage the extension of financial incentives to the ‘basic biofuels’ (first generation bioethanol and biodiesel) and ‘advanced biofuels’ (second generation ethanol, municipal solid waste third generation biofuels and bio-CNG) categories.

The policy also encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, used cooking oil and short gestation crops. The policy is also expected to give a push to the newly launched Gobardhan Yojana.

State-run oil companies Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation plan to spend nearly Rs 10,000 crore to set up bio-CNG plants across the country to promote clean fuel and reduce India’s fuel import bill.