India announces biodiesel policy

NEW DELHI, Aug. 16 (UPI) -- India has announced a biodiesel purchase policy to replace fossil fuels through non-conventional means of energy.

"The salient features of the biodiesel purchase policy, which the Ministry of Petroleum and Natural Gas has announced, are that the public sector oil marketing companies will purchase biodiesel, meeting the Bureau of Indian Standard specifications through their select purchase centers," Murli Deora, the minister for petroleum and natural gas, said Thursday.

He said biodiesel manufacturers interested in supplying biodiesel shall register with state-level coordinators. Priority in registration shall be given to such producers who propose to manufacture biodiesel from non-edible oils.

The minister said oil marketing companies shall decide from time to time a uniform delivered price for buying biodiesel, and such price shall be valid for six months and would be reviewed thereafter. Deora said Panchayati Raj institutions would undertake purchase of biodiesel as a rural business hub activity. The ministry has identified 20 biodiesel procurement centers in nine states.

On the issue of ethanol, Deora said the government is facing problems in implementation of an ethanol blended petrol program due to delay in issuance of the requisite gazette notification by state governments, hurdles in free interstate movement of ethanol and delay in issue of excise permits.