India approves national biofuels policy

India has approved the implementation of the National Policy on Biofuels and the creation of the National Biofuel Coordination Committee to be chaired by the Prime Minister and the Biofuel Steering Committee by the Cabinet Secretary. A sub-committee under the Steering Committee, composed of the department of biotechnology and the ministries of agriculture, new and renewable energy and rural development would aid research on biofuels. Under the approved policy, the countrys long-term plan is to raise blending of biofuels with petrol and diesel to 20% by 2017. Currently, petrol mixed with 5% ethanol is being sold in the country and pilot projects are being conducted to check the viability of selling diesel doped with non-edible oil. While oil firms now buy ethanol at Rs21.50 (US$0.46) per liter, non-edible oil for biodiesel use would be purchased at a price linked to the prevailing diesel fuel price. The biofuel policy also calls for scrapping taxes and duties on biodiesel and declared goods status being conferred on biodiesel and bioethanol. Declared goods status would mean that they would attract a uniform central sales tax or value-added tax rate, rather than the varied sales tax rates prevalent in several states in India. (September 11/12, 2008)