National Policy on Biofuels

National Policy on Biofuels

News: The Union Cabinet recently approved amendments to the National Policy on Biofuels, 2018.

Key Amendments approved:

Feedstocks
• The government will allow more feedstocks for the production of biofuels.

Revised Ethanol Blending Target
• Instead of 2030, the Centre plans to move ahead with its ethanol blending target of 20% of petrol containing ethanol by 2025-26.
• It will promote the production of biofuels in the country, under the Make in India program, by units located in Special Economic Zones (SEZ)/ Export Oriented Units (EoUs).

Export of Biofuels
• Permission will be granted for the export of biofuels in specific cases.
• The government has allowed the addition of new members to the National Biofuel Coordination Committee (NBCC)

How will the amendments help?
• They are expected to attract and foster developments of indigenous technologies which will pave the way for the Make in India drive and thereby generate more employment.
• The proposed amendments are expected to pave the way for the Make in India drive which will help reduce dependence on import of petroleum products through generation of more and more biofuels.
• Since many more feedstocks are being allowed for the production of biofuels, this will promote the Atmanirbhar Bharat and give an impetus to the Prime Minister’s vision of India becoming 'energy independent' by 2047.

Related initiatives:
• Ethanol Blended Petrol (EBP) Programme – Seeks to achieve blending of ethanol with a view to reducing pollution, conserving foreign exchange and increase value addition in the sugar industry enabling them to clear cane price arrears of farmers.
• Pradhan Mantri JI-VAN Yojana, 2019 – To create an ecosystem for setting up commercial projects and to boost research and development in 2G Ethanol sector.
• GOBAR (Galvanizing Organic Bio-Agro Resources) DHAN Scheme – It focuses on managing and converting cattle dung and solid waste in farms to useful compost, biogas and Bio-CNG. It not only keeps the villages clean but also helps increase the income of rural households.
• Repurpose Used Cooking Oil (RUCO) – Launched by FSSAI, it aims for an ecosystem that will enable the collection and conversion of used cooking oil to biodiesel.