Prime Minister Narendra Modi has announced plans to save Rs 12,000 crore by increasing use of bio-fuels in the country, Mint has reported. He has added that bio-fuels would also make the village economy stronger by boosting farm income and creating new jobs. He also added that bio-fuels would be good for environment. The Prime Minister was addressing a group of farmers, scientists, entrepreneurs, students, government officials, and legislators on World Bio-fuels day at New Delhi.
The government aims to create a Rs 1 trillion bio-fuel economy. State oil marketing companies will set up 12 second generation bio-fuel refineries with an investment of Rs 10,000 crore. The country had saved Rs 4,000 crore in foreign exchange to blending of ethanol and petrol. Ethanol blending of petrol in India has increased from 38 crore litres to 141 crore litres in the past four years.
The cabinet had recently approved a bio-fuel policy for giving impetus to the sector. It will also help reduce India’s dependence on crude oil imports and carbon emissions. The bio-fuel policy had included sugarcane juice, sugar beet, sweet sorghum, starch containing materials such as corn, cassava, and damaged grains as raw materials eligible for production of ethanol.