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New bio-fuel policy hanging fire

NEW DELHI: With international crude oil prices touching a whopping $147 a barrel, the search for alternative sources has intensified. However, the political uncertainty over the India-U.S. nuclear deal has delayed the announcement of a bio-fuel policy, outlining incentives for those undertaking such activity.

Although Minister of State for New and Renewable Energy Vilas Muttemwar declared last month that the government would come out with a new bio-fuel policy by July second week, this now looks a distant dream.

The political instability at the Centre has put the decision on this issue on the backburner and only when the government is through with the confidence vote, this matter will be taken up again for consideration and subsequent approval, say official sources.

It is not only the bio-fuel policy that is hanging fire but also the formation of a bio-fuel board under the Ministry of New and Renewable Energy. Under the final draft prepared by the Ministry, the Prime Minister will be the chairman of the board.

According to Mr. Muttemwar, jatropha plantations will come only on wasteland and not on fertile land. He has also stated that a Generation Based Incentive (GBI) for grid connected wind power projects was put in place. The time has come to concentrate on the GBI for renewable energy sources.

The Minister was all praise for Rajasthan for having shown extremely positive results in producing power through new renewable sources. He has said grid interactive wind power generation plants of a minimum installed capacity of 5 MW will be eligible for GBI.

The GBI would be available only for projects commissioned or synchronised to the grid and certified by the utility concerned.

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