The Centre is considering revision of the National Policy on Bio-fuels of 2009. Poor implementation of the policy in the past has kept the goals unrealised and called for modifications, particularly in the case of bio-diesel.
According to bio-diesel industry sources, the Union Ministry of New and Renewable Energy has called a meeting with the representatives of Biodiesel Association of India on December 21 to discuss the issues, including introduction of a mandatory level of bio-diesel that could be incorporated in the proposed policy amendments.
S K Mondal, Vice-President (East) of India, told
The 2009 policy had set an indicative target of 20 per cent blending of bio-fuels, both for bio-diesel and bio-ethanol, by 2017. Later, the government made 5 per cent use of bio-ethanol.
The use of bio-diesel is still not mandatory. However, oil marketing companies – IOC, HPCL and BPCL have recently taken steps to start purchasing of bio-diesel from the producers.
“OMCs floated tenders for small quantities of bio-diesel. Supplies would begin from this month,” Mondal said. Besides this, the Ministries of Railways and Shipping have prompted the railway and port authorities to start using bio-diesel.
After 2009 policy announcement, some 25 bio-diesel units had come up in the country with an installed capacity of 1.2 million tonnes a year. However, currently only five units are operational. “Even they have substantial underutilised capacities. Once demand starts flowing in, unused capacities could return to make available more supplies”, BAI official said.
Aditya V Agarwal, Director of Emami group of companies, said Emami Agrotech Ltd had set up 300 tonnes per day capacity for bio-diesel. “But, currently we are able to utilise only a third of our capacity at our Haldia plant because of inadequate demand,” he added.
Agarwal said if assured of steady demand through the introduction of mandatory use of bio-diesel, Emami was willing ramp up capacities through fresh investment.