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    Press Information Bureau Government of India Ministry of Petroleum & Natural Gas

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    Madhurjya Saikia
    The Cabinet approved a new National Policy on Biofuels for 2018 to promote the use of biofuels in India. The policy categorizes biofuels as basic or advanced and expands the raw materials allowed for ethanol production. It aims to reduce import dependence and environmental emissions while generating rural employment and income for farmers. The policy provides incentives for second-generation biofuel plants and setting up associated supply chain infrastructure.

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    Press Information Bureau Government of India Ministry of Petroleum & Natural Gas

    Uploaded by

    Madhurjya Saikia
    25 views2 pages
    The Cabinet approved a new National Policy on Biofuels for 2018 to promote the use of biofuels in India. The policy categorizes biofuels as basic or advanced and expands the raw materials allowed for ethanol production. It aims to reduce import dependence and environmental emissions while generating rural employment and income for farmers. The policy provides incentives for second-generation biofuel plants and setting up associated supply chain infrastructure.

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    The Cabinet approved a new National Policy on Biofuels for 2018 to promote the use of biofuels in India. The policy categorizes biofuels as basic or advanced and expands the raw materials allowed for ethanol production. It aims to reduce import dependence and environmental emissions while generating rural employment and income for farmers. The policy provides incentives for second-generation biofuel plants and setting up associated supply chain infrastructure.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    25 views2 pages

    Press Information Bureau Government of India Ministry of Petroleum & Natural Gas

    Uploaded by

    Madhurjya Saikia
    The Cabinet approved a new National Policy on Biofuels for 2018 to promote the use of biofuels in India. The policy categorizes biofuels as basic or advanced and expands the raw materials allowed for ethanol production. It aims to reduce import dependence and environmental emissions while generating rural employment and income for farmers. The policy provides incentives for second-generation biofuel plants and setting up associated supply chain infrastructure.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    12/18/2019 Cabinet approves National Policy on Biofuels - 2018

    Press Information Bureau


    Government of India
    Ministry of Petroleum & Natural Gas
    16 MAY 2018 3:27PM by PIB Delhi
    Cabinet approves National Policy on Biofuels - 2018

    The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved National Policy on Biofuels – 2018.

    Salient Features:

    i. The Policy categorises biofuels as "Basic Biofuels" viz. First Generation (1G) bioethanol & biodiesel and "Advanced
    Biofuels" - Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G)
    biofuels, bio-CNG etc. to enable extension of appropriate financial and fiscal incentives under each category.
    ii. The Policy expands the scope of raw material for ethanol production by allowing 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.
    iii. 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 use of surplus food grains for production of ethanol for blending with petrol with the
    approval of National Biofuel Coordination Committee.
    iv. With a thrust on Advanced Biofuels, the Policy indicates a viability gap funding scheme for 2G ethanol Bio refineries
    of Rs.5000 crore in 6 years in addition to additional tax incentives, higher purchase price as compared to 1G biofuels.
    v. The Policy encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, Used
    Cooking Oil, short gestation crops.
    vi. Roles and responsibilities of all the concerned Ministries/Departments with respect to biofuels has been captured in
    the Policy document to synergise efforts.

    Expected Benefits:

    Reduce Import Dependency: One crore lit of E10 saves Rs.28 crore of forex at current rates. The ethanol supply
    year 2017-18 is likely to see a supply of around 150 crore litres of ethanol which will result in savings of over
    Rs.4000 crore of forex.
    Cleaner Environment: One crore lit of E-10 saves around 20,000 ton of CO2 emissions. For the ethanol supply year
    2017-18, there will be lesser emissions of CO2 to the tune of 30 lakh ton. By reducing crop burning & conversion of
    agricultural residues/wastes to biofuels there will be further reduction in Green House Gas emissions.
    Health benefits: Prolonged reuse of Cooking Oil for preparing food, particularly in deep-frying is a potential health
    hazard and can lead to many diseases. Used Cooking Oil is a potential feedstock for biodiesel and its use for making
    biodiesel will prevent diversion of used cooking oil in the food industry.
    MSW Management: It is estimated that, annually 62 MMT of Municipal Solid Waste gets generated in India. There
    are technologies available which can convert waste/plastic, MSW to drop in fuels. One ton of such waste has the
    potential to provide around 20% of drop in fuels.
    Infrastructural Investment in Rural Areas: It is estimated that, one 100klpd bio refinery will require around Rs.800
    crore capital investment. At present Oil Marketing Companies are in the process of setting up twelve 2G bio refineries
    with an investment of around Rs.10,000 crore. Further addition of 2G bio refineries across the Country will spur
    infrastructural investment in the rural areas.
    https://pib.gov.in/Pressreleaseshare.aspx?PRID=1532265 1/2
    12/18/2019 Cabinet approves National Policy on Biofuels - 2018

    Employment Generation: One 100klpd 2G bio refinery can contribute 1200 jobs in Plant Operations, Village Level
    Entrepreneurs and Supply Chain Management.
    Additional Income to Farmers: By adopting 2G technologies, agricultural residues/waste which otherwise are burnt
    by the farmers can be converted to ethanol and can fetch a price for these waste if a market is developed for the same.
    Also, farmers are at a risk of not getting appropriate price for their produce during the surplus production phase. Thus
    conversion of surplus grains and agricultural biomass can help in price stabilization.

    Background:

    In order to promote biofuels in the country, a National Policy on Biofuels was made by Ministry of New and Renewable
    Energy during the year 2009. Globally, biofuels have caught the attention in last decade and it is imperative to keep up with
    the pace of developments in the field of biofuels. Biofuels in India are of strategic importance as it augers well with the
    ongoing initiatives of the Government such as Make in India, Swachh Bharat Abhiyan, Skill Development and offers great
    opportunity to integrate with the ambitious targets of doubling of Farmers Income, Import Reduction, Employment
    Generation, Waste to Wealth Creation. Biofuels programme in India has been largely impacted due to the sustained and
    quantum non-availability of domestic feedstock for biofuel production which needs to be addressed.

    ****

    AKT/VBA/SH

    https://pib.gov.in/Pressreleaseshare.aspx?PRID=1532265 2/2

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