Shri Vilas Muttewar, Minister for New and Renewable Energy said the
Cabinet approval to the National Policy on Bio-Fuel will post and
direction to the development of bio-fuels in India. The Union Cabinet
gave its approval to the National Policy on Biofuel along with setting
up of an empowered National Biofuel Coordination Committee, headed by
the Prime Minister and a Biofuel Steering Committee headed by Cabinet
Secretary. Under the approved policy, the country aims to raise
blending of bio fuels with petrol and diesel to 20% by the year 2017.
The National Biofuel Policy was steered by the Ministry of New and
Renewable Energy. A proposal on "National Policy on Biofuels & its
Implementation" was prepared after wide scale consultations and
inter-Ministerial deliberations. The draft Policy was considered by a
Group of Ministers (GoM) under the Chairmanship of Shri Sharad Pawar,
Minister of Agriculture, Food & Public Distribution. More than seven
Ministries and Planning commission had been debating on the bio fuel
policy since last two years. The Agricultural Minister had been
anchoring the discussions prior to finalization of policy. After
considering the suggestions of Planning Commission and other Members,
the Group of Ministers recommended the National Biofuel Policy to the
Cabinet.
Salient features of the National Biofuel Policy are:
• An indicative target of 20% by 2017 for the blending of biofuels –
bio-ethanol and bio-diesel has been proposed.
• Bio-diesel production will be taken up from non-edible oil seeds in
waste / degraded / marginal lands.
• The focus would be on indigenous production of bio-diesel feedstock
and import of Free Fatty Acid (FFA) based such as oil, palm etc. would
not be permitted.
• Bio-diesel plantations on community / Government / forest waste
lands would be encouraged while plantation in fertile irrigated lands
would not be encouraged.
• Minimum Support Price (MSP) with the provision of periodic revision
for bio-diesel oil seeds would be announced to provide fair price to
the growers. The details about the MSP mechanism, enshrined in the
National Biofuel Policy, would be worked out carefully subsequently
and considered by the Bio-fuel Steering Committee.
• Minimum Purchase Price (MPP) for the purchase of bio-ethanol by the
Oil Marketing Companies (OMCs) would be based on the actual cost of
production and import price of bio-ethanol. In case of bio-diesel, the
MPP should be linked to the prevailing retail diesel price.
• The National Biofuel Policy envisages that bio-fuels, namely,
bio-diesel and bio-ethanol may be brought under the ambit of "Declared
Goods" by the Government to ensure unrestricted movement of bio-fuels
within and outside the States.
• It is also stated in the Policy that no taxes and duties should be
levied on bio-diesel.
• The National Biofuel Coordination Committee to be chaired by the
Prime Minister would have the following Members:
1. Deputy Chairman, Planning Commission
2. Minister of New and Renewable Energy
3. Minister of Rural Development
4. Minister of Agriculture
5. Minister of Environment and Forest
6. Minister of Petroleum and Natural Gas
7. Minister of Science and Technology
8. Secretary, Ministry of New and Renewable Energy would be the Convener.
• The Bio-fuel Steering Committee to be chaired by Cabinet Secretary
would have the following members:
1. Secretary, Ministry of Finance
2. Secretary, Ministry of Rural Development, Dept of Land Resources
3. Secretary, Dept. of Agricultural Research & Education
4. Secretary, Ministry of Environment and Forest
5. Secretary, Ministry of Petroleum and Natural Gas
6. Secretary, Deptt. of Science and Technology
7. Secretary, Ministry of Panchayati Raj
8. Secretary, Dept. of Biotechnology
9. Secretary, Planning Commission
10. Secretary, Dept. of Scientific Industrial Research
11.Secretary, Ministry of New and Renewable Energy would be the Member
Secretary.
• In regard to research in bio-fuels, a Sub-Committee under the
Steering Committee would be constituted led by the Department of
Biotechnology, Ministries of Agriculture & Rural Development and
coordinated by the Ministry of New and Renewable Energy.
• Major thrust to be given to Research, Development & Demonstration
with focus on plantations, processing and production technologies
including second generation cellulosic biofuels.
Posts
