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The Indian ministry of
new & renewable energy has redrafted the national policy on
biofuels. The focus of the new policy is on indigenous production of
biofuels as an alternative to petroleum-based fuels, as well as meeting
the objectives of environmental protection and climate change
mitigation.
The ministry has outlined a strategy to achieve
energy security through the sustainable production, convention and
application of biofuels. The new policy has been proposed to be
applicable up to the end of the 12th Plan period, subject to periodic
review. The policy lays down clear targets for the substitution of
conventional fuels with biofuels for the short term (5% by 2012),
medium term (10% by 2017) and long term (20% beyond 2017).
The petroleum ministry has strongly argued that
oil companies would not be in a position to agree to a long-term
support price for biodiesel and would blend it with diesel only if
commercially viable. Should the government wish to consider a minimum
support price, it would need to put in place an appropriate mechanism,
including budgetary support, the ministry says.
The ministry of
new & renewable energy has supported the petroleum ministry's
position. However, sources noted that in such a situation, it would
fall on the ministry of new & renewable energy to put in place the
mechanism for the necessary budgetary support to ensure the commercial
viability of biodiesel.
The policy has proposed the setting up of
a national biofuel development board (NBDB) to be chaired by the Prime
Minister and with members drawn from the Planning Commission and other
concerned ministries, including the petroleum ministry.
The
proposed NBDB would oversee planning, coordination, effective
implementation and monitoring of all policy on biofuels and prepare a
national roadmap for biofuel production and application. An executive
council under the NBDB would also be set up to oversee the effective
implementation of the new biofuels policy.
PetrolWorld 140608
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