National Policy on Biofuels – 2018: Salient Features
- Categorisation of Biofuels: Biofuels have been categorised into 3 categories to extend appropriate fiscal incentives –
- First Generation (1G): Bio-Ethanol produced from molasses and bio-diesel from non-edible oilseeds (a.k.a Basic Biofuels).
- Second Generation (2G): Bio-ethanol produced from municipal solid waste (a.k.a Advanced Biofuels).
- Third Generation (3G): Fuels like bio-CNG.
- Expansion of Scope of raw material for ethanol production: Starch containing materials like Corn, Damaged food grains like wheat, Rotten Potatoes, unfit for human consumption for ethanol production can be used.
- Surplus food grains can be used for ethanol production:
- It allows use of surplus food grains for production of ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.
- This will benefit Farmers who are at a risk of not getting appropriate price for their produce during the surplus production phase.
- Viability gap funding: With a thrust on Advanced Biofuels, the Policy indicates a viability gap funding scheme for 2G ethanol Bio refineries.
Rajasthan’s strategy:
- It will emphasise on increasing production of oilseeds and establish a Centre for Excellence in Udaipur to promote research in the fields of alternative fuels and energy resources.
