The Policy categorises biofuels as-
(a) Basic Biofuels – First Generation (1G) bioethanol & biodiesel
(b) Advanced Biofuels – Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio-CNG etc.
to enable the extension of appropriate financial and fiscal incentives under each category.
- The Policy expands the scope of raw material for ethanol production by allowing the use of Sugarcane Juice, Sugar-containing materials like Sugar Beet, Sweet Sorghum, Starch-containing materials like Corn, Cassava, Damaged food grains like wheat, broken rice, Rotten Potatoes, unfit for human consumption for ethanol production.
- The Policy allows the use of surplus food grains for production of ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.
- With a thrust on Advanced Biofuels, the Policy indicates a viability gap funding scheme for 2G ethanol Biorefineries of Rs.5000 crore in 6 years in addition to additional tax incentives, higher purchase price as compared to 1G biofuels.
- The Policy encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, Used Cooking Oil, short gestation crops.
- Reduce Import Dependency
- Cleaner Environment
- Health benefits
- MSW (Municipal Solid Waste) Management
- Infrastructural Investment in Rural Areas
- Employment Generation
- Additional Income to Farmers
- In order to promote biofuels in the country, a National Policy on Biofuels was made by Ministry of New and Renewable Energy during the year 2009.
- Biofuels programme in India has been largely impacted due to the sustained and quantum non-availability of domestic feedstock for biofuel production which needs to be addressed.