National Policy on Biofuels

Government has notified the new National Policy on Biofuels – 2018 on 08.06.2018. MNRE has set an indicative target of 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel to be achieved by 2030. The percentage of the same currently stands at around 2% for petrol and less than 0.1% for diesel.

• Salient Features: The Policy categorises biofuels as “Basic Biofuels” viz. First Generation (1G) bioethanol & biodiesel and “Advanced Biofuels” - Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio-CNG etc. to enable extension of appropriate financial and fiscal incentives under each category.