11 September 2008 18:55 [Source: ICIS news]
NEW DELHI (ICIS news)--The Indian Cabinet approved on Thursday a national biofuels policy (NBP) as well as institutional mechanism to oversee its implementation.
Although the cabinet did not disclose the specifics of the policy, an official source said that the policy had set an indicative target of blending both petrol and diesel with 20% biofuels by 2017.
NBP envisages fiscal reforms to reduce the cost of biofuels and cultivation of non-edible oil crops on wastelands for production of feedstock for bio-diesel, he added.
The official release said NBP would be implemented under the guidance of ministerial panel named National Biofuel Coordination Committee under the chairmanship of Prime Minister.
At present, the government policy provides for blending 5% ethanol with petrol. In October 2007, the government had announced its decision to make 10% blending optional for states and mandatory from October 2008 for entire country excluding states where molasses-derived ethanol is not produced or is produced in insignificant volumes.
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