India’s 20% ethanol blending target advanced, new biofuel policy approved: 10 points

To drive Biofuels output and growth ahead, the Union Cabinet on Wednesday approved the amendments to the National Policy. Among the amendments, the Centre has okayed allowing more feedstocks for biofuels productions and also plans to advance the ethanol blending target in petrol.

Cabinet approved the new amendments in a meeting chaired by Prime Minister Narendra Modi today. The amendments were made to the National Policy on Biofuels that came in 2018.

Taking into consideration the advancements in the field of Biofuels, several decisions have been taken in the National Biofuel Coordination Committee (NBCC) meetings to raise biofuel production, recommendation of the Standing Committee, and the decision to advance to introduce of Ethanol Blended Petrol with up to 20% ethanol throughout the country from April 1, 2023. Following this, amendments are done to the National Policy on Biofuels.

Here is the list of 10 key points of the amendments in the National Policy on Biofuels.

1. One of the amendments is that the government will allow more feedstocks for the production of biofuels.

2. Further, under the amendments, the Centre plans to advance the ethanol blending target of 20% blending of ethanol in petrol to ESY 2025-26 from 2030.

3. 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).

4. The government has allowed adding of new members to the NBCC.

5. Permission will be granted for the export of biofuels in specific cases.

6. The government allows to delete/amend certain phrases in the Policy in line with decisions taken during the meetings of the National Biofuel Coordination Committee.

7. The proposed amendments are expected to pave the way for the Make in India drive thereby leading to a reduction in the import of petroleum products by the generation of more and more biofuels.

8. 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.

9. Also, the proposed amendments 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.

10. The “National Policy on Biofuels - 2018” was notified by the Ministry of Petroleum and Natural Gas on June 4, 2018, in supersession of the National Policy on Biofuels, promulgated through the Ministry of New & Renewable Energy, in 2009.