Union Cabinet Amends Biofuels Policy, Advances Target Of 20 Per Cent Ethanol Blending In Petrol To 2025-26

Prime Minister Narendra Modi-led Union Cabinet on Wednesday (18 May) approved advancing the target of blending 20 per cent ethanol in petrol by five years to 2025-26 as well as allowing more feedstocks for the production of biofuels in a bid to reduce dependence on imported oil for meeting the country's energy needs.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the amendments to the National Policy on Biofuels -2018, an official statement said on Wednesday.

The main amendment is for advancing the target of blending 20 per cent ethanol in petrol (20 per cent ethanol, 80 per cent petrol) to 2025-26 from 2030.

Currently, about 10 per cent of ethanol is blended in petrol.

Also, more feedstocks have been allowed for the production of biofuels which can be doped with auto fuels.

The amendments also provides for promoting the production of biofuels in the country, under the Make in India programme, by units located in Special Economic Zones (SEZ)/ Export Oriented Units (EoUs).

The Union Cabinet also gave its nod to granting permission for export of biofuels in specific cases.

The amendments to the National Policy on Biofuels will also attract and foster developments of indigenous technologies which will pave the way for Make in India drive and thereby generate more employment, the statement said.

The existing National Policy on Biofuels came up in 2018.

"This amendment proposal will pave the way for Make in India drive thereby leading to reduction in import of petroleum products by generation of more and more biofuels," the statement said.

"Since many more feedstocks are being allowed for production of biofuels, this will promote the Atmanirbhar Bharat and give an impetus to Prime Minister’s vision of India becoming 'energy independent' by 2047," it added.

(With inputs from PTI)