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Biofuel imperatives

The Union Cabinet has cleared the National Biofuel Policy, and set an indicative 2017 target to blend 20 per cent sugarcane-extracted ethanol with petrol, and non-edible oil with diesel. In the absence of a clear road map ahead, the National Biofuel Coordination Committee headed by the Prime Minister faces an uphill task. Without a mandate and plan of action, commercial-scale production of adequate volumes of biofuel will remain years away. While mixing of ethanol with pet rol has been initiated, biodiesel production has not taken off. The country now has a biodiesel processing capacity of 1.2 million tonnes. Substantial investments are needed for building capacity to meet the ambitious 20 per cent target. More important, the government needs to spell out a viable pricing mechanism, with a possible subsidy component, for biodiesel to motivate producers.

India’s biofuel thrust comes even as concerns grow in parts of the developed world stemming from the theory that large increases in biofuel production are the main reason for the steep rise in global food prices. The food-versus-fuel debate holds the risk of weakening one of the world’s best tools to fight climate change and one of the developing world’s best hopes of economic growth — as has been exemplified by countries such as Brazil. But it is essential to pursue the right feedstock model. While sugarcane-based ethanol is the logical choice here for petrol, oil extracted from jatropha seeds is seen as a promising feedstock for biodiesel — the government has now recommended it. The plant can be cultivated on wasteland — an estimated 55 million hectares in India. Some States have taken initiatives to encourage its cultivation. It is imperative that the Centre comes up with a comprehensive policy and an incentive package.

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