The Minister of State for Petroleum and Natural Gas, Shri Rameswar Teli in a written reply to a question in the Lok Sabha today informed that The Government notified the National Policy on Biofuels (NPB) - 2018 on 04.06.2018 to promote the use of biofuels in the country. The NPB envisages an indicative target of 20% blending of ethanol in petrol by 2030 and 5% blending of biodiesel in diesel by 2030.

Some of the activities undertaken for technological development in the biofuel sector are as follows:

Department of Biotechnology is promoting innovation Research, Development and Demonstration in Biofuel areas through various Schemes like the Centre of Excellence, extramural projects, fellowship schemes, and international cooperation.

Department of Biotechnology is supporting projects to ease the utilization of biofuels by making them cost effective. In Gujarat, Department of Biotechnology is implementing a project on self-sustainable model for energy generation by adopting clean technology for conversion of mixed organic waste into methane and bio-fertilizer.

Collaboration of IOC R&D with Department of Biotechnology, in the area of Bioenergy.

Development of integrated 2G ethanol enzymatic technology using biomass feedstock such as rice straw, wheat straw, bagasse etc.

Development and successful demo of raw material agnostic high yield Bio-methanation technology to produce bio-gas.

Development of agri waste pre-treatment technology for in-situ preparation of feed for bio-gas units.

Collaborative research with IISC, Bengaluru for development of technology to produce fuel cell grade hydrogen from biomass to tackle biomass challenge while improving ambient air quality.

The measures taken by the Government to promote the use of biofuels in the Country including Gujarat, includes allowing use of sugarcane and food grains (maize and surplus stocks of rice with Food Corporation of India)  for conversion to ethanol; administered price mechanism for procurement of ethanol under EBP Programme including enhanced ex-mill price of ethanol year on year from ethanol supply year 2017; lowered GST rate to 5% on ethanol and biodiesel for EBP and biodiesel blending Programme respectively; amendment in Industries (Development & Regulation) Act for free movement of ethanol; interest subvention scheme for enhancement and augmentation of ethanol production capacity in the country; opened 2G route for procurement of ethanol; allowing direct sale of bio-diesel (B100) for blending with High Speed Diesel etc.

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