Why in News?

• Rajasthan has become the first State in the country to implement the national policy on biofuels.
• The policy lays emphasis on increasing production of oilseeds and establish a Centre for Excellence in Udaipur to promote research in the fields of alternative fuels and energy resources.

Details:

• Under this policy, State Government will lay emphasis on increasing production of oilseeds and establish Centre for Excellence in Udaipur to promote research in fields of alternative fuels and energy resources.
• Biodiesel plant of capacity of eight tonnes per day already has been installed in the State with financial assistance of Indian Railways.
• State government will give emphasis to promote marketing of biofuels and generate awareness about them.
• State Rural Livelihood Development Council will also encourage women’s self-help groups (SHGs) to explore the scope for additional income through supply of biodiesel

National Policy on Biofuels- 2018

• The policy categorises of biofuels into first generation (1G), second generation (2G) and third generation (3G) to enable extension of appropriate financial and fiscal incentives under each category.
• It seeks to help farmers dispose of their surplus stock in an economic manner and reduce the country’s oil import dependence.
• It has expanded the scope of raw materials for ethanol production by allowing use of sugarcane juice, sugar containing materials like sweet sorghum, sugar beet, starch containing materials like corn, cassava, damaged food grains like broken rice, wheat, rotten potatoes which are unfit for human consumption, for ethanol production.
• It also encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, used cooking oil, short gestation crops.

Salient Features of the Policy:

 

• Categorization: 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 extension of appropriate financial and fiscal incentives under each category
• Scope of raw materials: The Policy expands the scope of raw material for ethanol production by allowing 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.
• Protection to farmers: Farmers are at a risk of not getting appropriate price for their produce during the surplus production phase.
• Taking this into account, the Policy allows use of surplus food grains for production of ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.
• Viability gap funding: 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, higher purchase price as compared to 1G biofuels.
• Boost to biodiesel production: The Policy encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, Used Cooking Oil, short gestation crops.

Expected Benefits

• Import dependency: The policy aims at reducing import dependency.
• Cleaner environment: By reducing crop burning & conversion of agricultural residues/wastes to biofuels there will be further reduction in Green House Gas emissions.
• 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 diversion of used cooking oil in the food industry.
• Employment Generation: One 100klpd 2G bio refinery can contribute 1200 jobs in Plant Operations, Village Level Entrepreneurs and Supply Chain Management.
• Additional Income to Farmers: By adopting 2G technologies, agricultural residues/waste which otherwise are burnt by the farmers can be converted to ethanol and can fetch a price for these waste if a market is developed for the same.