National Policy On

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Why in
news?
The
Prime Minister
recently
approved
“National Policy
on Bio-fuels
2018” to
promote bio -
fuels in India

1 What is
Bio-Fuel
Bio-fuel is any hydrocarbon fuel
produced from living or organic
matter usually plants. e.g.

Bio Diesel is produced Bio ethanol is an Bio gas is naturally

using vegetable oil and alcohol produced from produced from decomposition
fat in a procedure called fermentation of carbohydrate of organic waste or by
transesterification and cellulosic material of anaerobic digestion
crops, plants and grasses

2 Bio Fuel Fossil Fuel

versus

Bio Fuel is a renewable Fossil fuel is non renewable

source of energy source of energy

Produced from living Created from decayed or

matter in a short period dead things, takes years
of time e.g. bio gas to form. E.g. coal

Causes less pollution, Plays a major role in

is eco friendly environmental pollution

Can be produced Is formed naturally

industrially

3 Generation of Bio Fuels

Fourth Generation
biofuel contributes
Third Generation in SUSTAINABLE
Biofuels uses specially ENERGY and in
Second Generation engineered ALGAE capturing and
Biofuels uses whose biomass is storing CO2
First Generation NON-FOOD CROPS used to convert into
Biofuels uses the and feedstock e.g. biofuels
FOOD CROPS for Wood, grass,
bio fuels e.g. wheat organic waste etc
& sugar for making
ethanol

4
National
Policy on biofuels,
2018

Objective
To Expand the scope of Raw Material for Ethanol Production
by the use of:

Sugarcane Juice Starch Containing Materials

e.g. Corn, Cassava

Sugar Containing Materials Damaged Food Grains e.g. wheat,

e.g. Sugar Beet, Sweet broken rice, rotten Potatoes, unfit
Sorghum for human consumption

Salient Features
Categorizes biofuels to enable extension of appropriate financial and fiscal
incentives under each category as

Basic Bio-fuels - First Generation Advanced Bio-fuels – Second Generation

(1G) bio-ethanol and biodiesel (2G) ethanol, Municipal Solid Waste (MSW)
to drop-in fuels, Third Generation (3G)
bio-fuels, Bio-CNG etc.

Allows use of surplus food grains for production of ethanol to blend

with petrol and ensures appropriate price to farmers during surplus

Provides Thrust on Advanced Biofuels by Viability gap funding scheme for 2G

ethanol Bio refineries of Rs.5000 crore in 6 years, additional tax incentives and
higher purchase price as compared to 1G biofuels

Contributes to supply chain mechanisms for biodiesel production

from non-edible oilseeds, used cooking oil, etc

Converges efforts of concerned Ministries/

Departments with respect to bio-fuels

Potential
Benefits
of the policy

Eco Friendly - Conversion of

agricultural wastes into bio - fuels
reduces GHGs emissions

Forex Savings - Production of

bio-fuels would reduce Import
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Dependency on crude oil

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Waste Management Benefits -

Contribution in Municipal Solid Waste
Management by putting MSW (around
62 MMT annually in India) to drop in
fuels e.g. hydrocarbon fuels
from solid waste Infrastructural Investment - in rural
areas though addition of 2G bio
refineries across the Country

Employment Generation -
through the establishment of
bio-refineries for Plant Operations, Additional Income to Farmers -
Supply Chain Management etc by the sale of agricultural residues
that is generally burnt

Health Benefits - Used cooking oil Price Stabilization - of the

is a potential feedstock for making produce by conversion of
bio-diesel, using it for bio fuel surplus grains and
will save from health hazards agricultural biomass
developed in food industry

Policy Analysis:
Policy
2009 and 2018

To promote bio-fuels The National Though it had But Poor imple- National Biofuel
in the country, a Policy on bio- some optimistic mentation of the Coordination
“National Policy on fuels, 2009 was features like - policy compels for Committee,
Biofuels” was made brought with a Biodiesel modifications. The headed by the PM
by Ministry of New & target of 20% production from National Policy on to provide policy
Renewable Energy blending of bio- non-edible oil- Biofuels 2018 guidance and
first time in 2009. The fuels both for seeds on waste; changes the trend coordination and
Bio-fuels programme biodiesel and bio fair price to & tries to address A Biofuel Steering
in India has been ethanol by 2017 farmers through supply-side issues Committee,
largely impacted that could not MSP for non- by encouraging chaired by Cabinet
due to – be achieved edible oilseeds; alternative feeds- Secretary to
Minimum tocks with an aim oversee imple-
Sustained non-
Purchase Price to reduce the cost mentation of the
availability of
(MPP) for of producing bio- Policy working
domestic feedstock
purchase of bio- fuels and improve since 2009, will
for biofuel
ethanol and bio- affordability for play a greater
production
diesel, its major consumers as well role
Non availability of thrust on R&D as developing bio-
ethanol at industrial with focus on fuel production into
level that depends plantations, a vibrant 1 trillion
on sugar factories, processing and industry in the
that is sometimes production of bio- next six years
diverted to other fuels, Financial
users such as incentives for
alcohol producers second generation
bio-fuels etc

Challenges and way forward

Abuse of policy especially Inadequate supply-chain Need of improvement

when prices of crude oil infrastructure to deliver biofuels in technological and
soar as farmers would find it to the final consumer. Hence, financial feasibility with
economically more rewarding to improved investment respect to production
convert farm produce into should be done in building of biofuels
ethanol for doping with petrol robust infrastructure

Limits on private investment:

needs to be removed that have
discouraged private investment in
building supply chains for tapping
India’s huge biofuel potential
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