The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved National Policy on Biofuels – 2018. The Policy categorizes biofuels as “Basic Biofuels” viz. First Generation bioethanol & biodiesel and Advanced Biofuels Second Generation ethanol, Municipal Solid Waste to drop-in fuels, Third Generation biofuels, bio-CNG etc. to enable the extension of appropriate financial and fiscal incentives under each category. The Policy expands the scope of raw material for ethanol production by allowing the use of Sugarcane Juice, Sugar-containing materials like Sugar Beet, Sweet Sorghum, Starch-containing materials like Corn, Cassava, Damaged food grains like wheat, broken rice, Rotten Potatoes, unfit for human consumption for ethanol production. Farmers are at a risk of not getting appropriate price for their produce during the surplus production phase. Taking this into account, the Policy allows the use of surplus food grains for production of ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.

  • Farmers are at a risk of not getting appropriate price for their produce, the Policy allows the use of surplus food grains for production of ethanol for blending with petrol, with the approval of National Biofuel Coordination Committee.
  • The policy indicates a viability gap funding scheme for 2G ethanol Biorefineries of Rs 5000 crore in 6 years in addition to additional tax incentives, higher purchase price as compared to 1G biofuels.
  • It encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, used cooking oil and short gestation crops.
  • It Reduces dependency on imports.
  • Boost infrastructural investment in rural areas.
  • The Policy expands the scope of raw material for ethanol production by allowing the use of Sugarcane Juice, Sugar-containing materials like Sugar Beet, Sweet Sorghum, Starch-containing materials like Corn, Cassava, Damaged food grains like wheat, broken rice, Rotten Potatoes, unfit for human consumption for ethanol production.