India's National Biofuels Policy to Boost Investment

Union Agriculture Minister Sharad Pawar inaugurating the first Biofuels India Summit organised by the Confederation of Indian Industry (CII) and the Ministry of New and Renewable Energy (MNRE) said the National Policy on Biofuels envisaged ambitious targets which would certainly boost biofuels as an alternative energy source and thereby facilitate greater investment in the sector.

In his keynote address, Vilas Muttemwar, Minister of State for New & Renewable Energy, expressed hope the National Policy on Biofuels, would provide a roadmap for the Indian industry and the public sector to tap the full potential of this critical sector. Appreciating the CII's work, he said that promotion of biofuels would go a long way in meeting the country's energy security needs and sustain the momentum of economic growth, CommodityOnline tells us.

Both Pawar and Muttemwar stressed that India's approach to biofuels is based solely on non-food feedstocks to be raised on degraded or wastelands that are not suited for agriculture, thus avoiding a possible conflict of fuel vs food security.

Pramod Chaudhuri, Chairman, CII National Committee on Biofuels and Chairman, Praj Industries Ltd, said the development of the biofuels sector requires a highly efficient and integrated supply chain backed up by a similarly concerted and integrated policy framework cutting across national and state boundaries. He mooted a nine-point CII agenda and hoped it would be considered for inclusion in the National Biofuels Policy. The agenda includes include the introduction of flexing mandating, innovative approach to pricing, classification of biofuels as renewable energy, single window clearance across states and 'declared goods' status for biofuels.

The CII agenda also calls for the creation of a Second-Generation Biofuels Fund along with the setting up of four Regional Bio Energy Centres to boost R&D activities and pilot projects in the sector. This, Chaudhuri said, was specially important in light of the ongoing 'food vs. fuel' debate, which is motivating the development of new technologies to increase yield and reduce dependence on the already scarce resources.

On the occasion, a CII-Rabobank Strategy Paper titled 'Sustainable Biofuel Policy for India' was released by Pawar. The paper sets forth a comprehensive agenda for promoting sustainable development of the biofuels sector in the country with a view to enhancing energy security.

Philip G New, President-Global Biofuels, British Petroleum, set the tone for the summit in his theme address where he outlined the need for regulatory certainty and removal of tariff barriers. Apart from mandatory sustainability standards, he advocated an effective land and water use policy, globally and not just for the biofuel industry but for all users.

Rajesh Srivastava, Chairman & Managing Director, Rabo Equity Advisors, pointed to knowledge gap and the lack of understanding among investors and especially on the biodiesel front in India. He hoped the strategy paper would provide direction to policy makers.

CII Director-General C. Banerjee said the apex industry body was committed to development of the biofuels sector given its critical importance in terms of energy security, climate change, and inclusive growth. The CII is looking at various need-based projects and interventions on the lines of the 'realistic costing exercise of biodiesel in India' initiated jointly with the Ministry of New and Renewable Energy, he said.

The two-day Biofuels India 2008 Summit has brought together delegates from 10 countries, reflecting the global interest in this sector and the urge for cooperation in exchanging knowledge and experiences. Participants included policy makers, senior Central and State Government officials, bankers and venture capitalists, representatives from biofuels, sugar, oil and petroleum sectors, service providers, R&D institutions as also user segments relating to the auto industry.

TheBioenergySite News Desk

Sign up for our
regular news updates

Latest Bioenergy Industry News

•   Schafer Leads US Delegation to Brazil Conference
•   USDA Invites Applications for Biorefinery Loans
•   Biofuels Not to Blame for Food Price Rises
•   CAP Health Check Will Help Farmers
•   Energy Diversification and Climate Change
•   Immediate Reform of UN Body Urged
•   Project Breaks Solar Efficiency Record
•   Ethanol Agreement Between China and Brazil
•   Ethanol from Sugar for Angola
•   Biodiesel Plant Opens in Danville