Cabinet approves amendments to National Policy on Biofuels-2018

New Delhi, May 18

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the amendments to the National Policy on Biofuels-2018.

The new amendments will allow more feed stocks for production of biofuels, and advance the ethanol blending target of 20 per cent blending of ethanol in petrol to ESY 2025-26 from 2030. They will also promote the production of biofuels in the country, under the Make in India programme, by units located in Special Economic Zones and Export Oriented Units.

The amendments are also to grant permission for export of biofuels in specific cases, and to amend certain phrases in the policy in line with decisions taken during the meetings of the National Biofuel Coordination Committee (NBCC).

Due to advancements in the field of biofuels, various decisions taken in the NBCC meetings to increase biofuel production, the recommendation of the Standing Committee and the decision to advance to introduce ethanol-blended petrol with up to 20 per cent ethanol throughout the country from April 1, are to be incorporated in the National Policy on Biofuels though the amendments.

This proposal will also attract and foster developments of indigenous technologies which will pave the way for Make in India drive and thereby generate more employment, as well as leading to reduction in import of petroleum products by generation of more and more biofuels, a government statement said.

Since many more feed stocks are being allowed for production of biofuels, this will promote the Atmanirbhar Bharat and give an impetus to Prime Minister's vision of India becoming 'energy independent' by 2047, it said.

The National Policy on Biofuels-2018 was notified by the Ministry of Petroleum and Natural Gas on June 4, 2018 in supersession of National Policy on Biofuels, promulgated through the Ministry of New and Renewable Energy, in 2009.