Biofuel policy gets govt nod

New Delhi: Fast-tracking its move to promote sustainable energy usage, the government on Thursday approved the National Policy on Biofuels, which will provide financial incentives, including subsidies and grants, to theproducers for second-generation biofuels. The policy also talks about setting up of a National Biofuel Fund.

Further, a national Biofuel Coordination Committee, headed by the Prime Minister, will be set up to provide policy guidance and coordination.Global biofuel usage is expected to double by 2015. Brazil is the largest exporter of biofuels in the world.

In India, the use and production of bio-fuels is at a nascent stage. However, the government is trying to be one the largest producers of the biofuels in the coming years in a bid to cut its dependence of conventional fuels such as hydrocarbons and coal as 70% of the consumption is met through imports. The government has undertaken a survey to assess the status of jatropha plantations in nine States.

It has also signed a memorandum of understanding with the US to improve research and development of second generation biofuels such as celluosicethanol and algal biodiesel. Production of biofuels has been criticised the world over as it takes away the agricultural land meant for food stock production.

The government, in its policy, has made it mandatory for non-food feedstocks to be raised on wasteland, or land not suited for agriculture, to avoid a conflict between food security and fuel.

To promote the production of biofuels by farmers, the policy will make sure that the minimum support price for non-edible oilseeds is revised periodically.The policy has also set a target of 20% blending of biofuels, both for biodiesel and bioethanol, by 2017.

Source : http://www.dnaindia.com/money/report_biofuel-policy-gets-govt-nod_1327217