Rajasthan has carved a niche for itself as the first Indian state to implement the National Policy on Biofuels, which was originally unveiled by the central government in May 2018.
State Initiatives and Key Highlights
To kick off this initiative, the desert state has decided to focus on boosting the yield of oilseeds. Additionally, it plans to establish a Centre for Excellence in Udaipur to foster research in alternative fuels and energy sources. According to the state government, an 8-tonnes per day capacity biodiesel plant has already been set up within the state. The government will not only promote the marketing of biofuels but will also endeavour to raise awareness about its benefits.
The State Rural Livelihood Development Council is slated to encourage women’s self-help groups to explore opportunities for additional revenue through the supply of biodiesel.
The Genesis of the National Policy on Biofuels
In order to advocate for biofuels in India, the Ministry of New and Renewable Energy launched the National Policy on Biofuels in 2009. Biofuels hold strategic importance in India as they resonate with the ongoing Government initiatives like Make in India, Swachh Bharat Abhiyan, Skill development. Furthermore, they offer a unique opportunity to align with the targets of doubling farmers’ income, reducing imports and generating employment opportunities. Despite their significance, the biofuel programme in India has been hamstrung by the consistent unavailability of domestic feedstock for biofuel production.
National Policy on Biofuels
The Policy classifies biofuels into two categories: Basic Biofuels or First Generation (1G) and Advanced Biofuels or Second Generation (2G). It aims to expand the scope of raw materials for ethanol production, including sugarcane juice, sugar beet, sweet sorghum, and starch-containing materials like corn, cassava, damaged food grains, broken rice, and rotten potatoes that are unfit for human consumption.
The Policy also encourages the use of surplus food grains for ethanol production by blending it with petrol after obtaining approval from the National Biofuel Coordination Committee. It is designed to bridge the viability gap in 2G ethanol bio refineries through a funding scheme of Rs.5000 crore alongside additional tax incentives. Moreover, it promotes setting up supply chain mechanisms for biodiesel production from non-edible oilseeds, used cooking oil, and short gestation crops.
Benefits and Impact
Implementing this policy will lead to a reduced dependency on crude oil imports by increasing the ethanol supply, resulting in significant forex savings. It not only benefits the environment by reducing crop burning and greenhouse gas emissions but also aids in managing municipal solid waste effectively.
From a health perspective, the reuse of cooking oil in food preparation poses several health risks. By using it as a potential feedstock for biodiesel, its diversion towards the food industry can be prevented.
Additionally, this policy holds promise in terms of employment generation. A single 100klpd 2G bio-refinery can contribute to 1200 jobs in diverse fields such as plant operations, village level entrepreneurship, and supply chain management. Another noteworthy advantage is the additional income that farmers can generate by converting agricultural residue or waste into ethanol.
