National Policy on Bio-Fuel

(Ministry of Petroleum and Natural Gas)

WHAT

• The National Policy on Biofuels-2018 allows the 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 the 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.
• 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 a diesel by 2030.
• Under EBP programme, ethanol blending in petrol is being undertaken by the Oil Marketing Companies (OMCs) in the 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.
• Government has approved Pradhan Mantri JI-VAN Yojana to provide Viability Gap Funding (VGF) to Second Generation bio-ethanol manufacturing projects to increase the availability of ethanol for EBP programme.
• Government has decided to leapfrog directly to  BS-VI quality w.e.f. 1st April 2020 in the entire country.

Source: PIB

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