Government restriction on sale of biodiesel disrupts production

Several biodiesel manufacturers in India halted production in June, due to government-imposed restrictions on biodiesel sales. India’s Petroleum Ministry issued a directive in March asking state governments to ensure that biodiesel is not sold as transport fuel directly to consumers because it is meant to be blended with high speed diesel fuel. According to Apurva Chandra, joint secretary in the Petroleum Ministry, marketing rights for transport fuel have to be secured from the government before anyone can sell biodiesel. Since the use of biofuels, such as ethanol and biodiesel, is encouraged globally, biodiesel manufacturers in India had invested about Rs12 billion (US$251.17 million) to install capacity and have brought in at least 700,000 hectares of land under jatropha cultivation. (June 11, 2009)