India proposes biofuels for 5% of vehicles by 2012

According to the governments new draft policy, 5% of vehicles in India will run on biofuels by 2012. Government subsidies and financial incentives for industry and farmers have been sought to achieve this target. At present, biofuels are available only in selected cities in India. However, “by 2017 we intend to supply biofuels for 10-20% of vehicles running on Indian roads,” a government official said. To protect the domestic biofuels industry, the Ministry for Non-Conventional and Renewable Energy has sought the Cabinet’s approval for imposing duties and taxes on imported biofuels. The policy document says targets for operation of petrol and diesel vehicles on biofuels would be prepared, which will also include rules for conversion of petrol vehicles to biofuel mode. (January 4, 2007)