In order to inculcate more focus on sustainable energy use, the Indian government has given its consent to the National Policy on Biofuels. This will increase scope of financial subsidies and grants to the utility of second generation biofuels. There will be a commissioning of National Biofuel Fund and a Biofuel Coordination Committee headed by the PM.
With Brazil topping the list of biofuel users in the world, it is expected that by 2015, the usage of biofuel will double in the world. India wants to have a separate identity with regard to this bio fuel; there would be a cut in the dependence of hydrocarbon and coal, 70% of which is derived from import. Explorations on jatropha plantations have been expedited.
An MoU with the US on R&D of celluosicethanol and algal biodiesel has been initiated. The irony is that promotion of bio diesel is criticized as depriving food production. But the government has clearly mandated and demarcated the fertile land and waste land. The minimum support price for edible oils is ensured to the farmers periodically. Under the Policy, 20% blending of biofuels is targeted (for biodiesel and bioethanol) by 2017.