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02 Jul, 2019

7 Min Read

Rajasthan First State to Implement Biofuel Policy

GS-III : Indian Economy Energy

Rajasthan First State to Implement Biofuel Policy

Theme: Biofuel Policy

  • Rajasthan has become the first State in the country to implement the national policy on biofuels unveiled by the Centre in May 2018.
  • The desert State will lay emphasis on increasing the production of oilseeds and establish a Centre for Excellence in Udaipur to promote research in the fields of alternative fuels and energy resources. A Biodiesel Plant with a capacity of 8 tonnes a day had already been installed in the state with then with the financial assistance of the Indian Railways.
  • The State Rural Livelihood development council will also encourage women’s Self Help Groups to explore the scope for additional income through the supply of Bio-diesel.

National Policy on Biofuels:

  • The Policy categorises biofuels as "Basic Biofuels" viz. First Generation (1G) bioethanol & biodiesel and "Advanced Biofuels" - Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio-CNG etc. to enable the extension of appropriate financial and fiscal incentives under each category.
  • The Policy expands the scope of raw material for ethanol production by allowing the use of Sugarcane Juice, Sugar containing materials like Sugar Beet, Sweet Sorghum, Starch containing materials like Corn, Cassava, Damaged food grains like wheat, broken rice, Rotten Potatoes, unfit for human consumption for ethanol production.
  • Farmers are at risk of not getting the appropriate price for their produce during the surplus production phase. Taking this into account, the Policy allows the use of surplus food grains for the production of ethanol for blending with petrol with the approval of the National Biofuel Coordination Committee.
  • With a thrust on Advanced Biofuels, the Policy indicates a viability gap funding scheme for 2G ethanol Bio refineries of Rs.5000 crore in 6 years in addition to additional tax incentives, and a higher purchase price as compared to 1G biofuels.
  • The Policy encourages the setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, Used Cooking Oil, and short gestation crops.
  • Roles and responsibilities of all the concerned Ministries/Departments with respect to biofuels have been captured in the Policy document to synergise efforts

Expected Benefits:

  • Reduce Import dependency
  • Cleaner Environment
  • Health Benefits: Prolonged reuse of Cooking Oil for preparing food, particularly in deep-frying is a potential health hazard and can lead to many diseases. Used Cooking Oil is a potential feedstock for biodiesel and its use for making biodiesel will prevent the diversion of used cooking oil in the food industry.
  • Municipal solid waste management: It is estimated that annually 62 MMT of Municipal Solid Waste gets generated in India. There are technologies available which can convert waste/plastic, MSW to drop in fuels. One ton of such waste has the potential to provide around 20% of drop in fuels.
  • Infrastructural investment in Rural Areas
  • Employment Generation
  • Additional Income to Generation: By adopting 2G technologies, agricultural residues/waste which otherwise burnt by the farmers can be converted to ethanol and can fetch a price for this waste if a market is developed for the same. Also, farmers are at risk of not getting the appropriate price for their produce during the surplus production phase. Thus conversion of surplus grains and agricultural biomass can help in price stabilization.

Source: Various

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