National Policy On Bio-Fuel: Ministry of Petroleum & Natural Gas
National Policy On Bio-Fuel: Ministry of Petroleum & Natural Gas
PRID=1575404
The National Policy on Biofuels-2018 notified on 8.6.2018, inter-alia, allows production of ethanol from
damaged food grains like wheat, broken rice etc. which are unfit for human consumption. The policy also
allows conversion of surplus quantities of food grains to ethanol, based on the approval of National
Biofuel Coordination Committee.
Use of damaged foodgrains and surplus foodgrains for production of ethanol will increase its
availability for Ethanol Blended Petrol (EBP) Programme. During the ethanol supply year 2017-
18, 150.5 crore litres of ethanol was blended in Petrol which resulted in foreign exchange impact
of about Rs. 5070 crore and carbon emission reduced to the extent of 29.94 lakh tonnes.
The National Policy on Biofuels-2018 approved by the Government envisages an indicative target of 20%
blending of ethanol in petrol and 5% blending of bio-diesel in diesel by 2030. Under EBP programme,
ethanol blending in petrol is being undertaken by the Oil Marketing Companies (OMCs) in whole country
except island Union Territory (UT) of Andaman Nicobar and Lakshadweep wherein, OMCs blend up to
10 % ethanol in petrol under the EBP Programme.
Further, Government has approved Pradhan Mantri JI-VAN Yojana to provide Viability Gap Funding
(VGF) to Second Generation bio-ethanol manufacturing projects to increase availability of ethanol for
EBP programme. Ministry has also issued Gazette Notification dated 1.5.2019 on “Guidelines for sale of
Biodiesel for blending with high speed diesel for transportation purposes-2019” dated 30.4.2019.
Government has decided to leapfrog directly to BS-VI quality w.e.f. 1st April, 2020 in the entire
country. Considering the rise in environmental pollution in National Capital Region, Government has
started supply of BS-VI auto fuel in National Capital Territory of Delhi from 1st April, 2018. Further, in
line with the directions issued by Ministry of Petroleum and Natural Gas, supply of BS-VI auto fuel has
started in ten districts of National Capital Region and three other districts/cities outside of National
Capital Region (Karauli, Dhaulpur and city of Agra) w.e.f. 1st April, 2019.
This information was given by the Union Minister for Petroleum and Natural Gas Shri
Dharmendra Pradhan in a written reply in the Lok Sabha today.
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YB
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