Biofuel Policy

[pib] National Policy on Bio-Fuels-2018PIBPrelims Only


Mains Paper 2: Governance | Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

From UPSC perspective, the following things are important:

Prelims level: Read the attached story

Mains level: Aim and particulars of the National Policy on Biofuels.


Context: Union Ministry of Petroleum & Natural Gas has notified the National Policy on Biofuels-2018.

Aim: Ensuring adequate and sustained availability of domestic feedstock for biofuel production, increasing Farmers Income, Import Reduction, Employment Generation and Waste to Wealth Creation,

Provisions of the Policy

  1. The policy categorizes biofuels as “Basic Biofuels” such as bio ethanol & biodiesel and “Advanced Biofuels” such as Second Generation (2G) ethanol, bio-CNG, Third Generation Biofuels, etc. to enable extension of appropriate financial and fiscal incentives under each category.
  2. It also includes promotion of advanced biofuels through various incentives, off-take assurance and viability gap funding.

Damaged and Surplus foodgrains to be utilised

  1. With an objective of increasing production of ethanol, this Policy allows production of ethanol from damaged food grains like wheat, broken rice etc. which are unfit for human consumption.
  2. Additionally, during an agriculture crop year, when there is projected over supply of food grains as anticipated by the Ministry of Agriculture & Farmers Welfare, the policy allows conversion of surplus quantities of food grains to ethanol, based on the approval of National Biofuel Coordination Committee.
  3. Use of damaged food grains and surplus food grains for production of ethanol will increase its availability for Ethanol Blended Petrol (EBP) Programme.
  4. This will result in increasing the blending percentage, increasing farmer’s income, saving of foreign exchange and addressing environmental issues.

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