Lok Sabha Question No. 305 (STARRED), answered on 2023-08-10
Subject: Biodiesel Purchase Policy
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Krishna Pal Singh Yadav, Heena Vijaykumar Gavit

## LOK SABHA STARRED QUESTION No. 305

TO BE ANSWERED ON 10 th August, 2023

## BIODIESEL PURCHASE POLICY

*305.  DR. KRISHNA PAL SINGH YADAV: DR. HEENA VIJAYKUMAR GAVIT:

## पेोिलयम और ाकृितक गैस मंी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  the details of the contribution of Biodiesel Purchase Policy implemented by the Government as a sustainable fuel source in the country;
- (b)  the  criteria  and  standards  set  for  the  procurement  of  biodiesel  under  the Biodiesel Purchase Policy;
- (c)  the  manner  in  which  the  policy  ensures  quality  control  and  adherence  to environmental sustainability norms in the production and procurement processes;
- (d)  the  measures  taken  by  the  Government  to  create  awareness  and  encourage participation among farmers and other stakeholders in the cultivation of biofuel feedstock crops such as jatropha and pongamia and their subsequent utilization in biodiesel production; and
- (e) the progress made under the Biodiesel Purchase Policy along with achievements  in  biodiesel  production,  procurement  volumes  and  the  overall contribution to India's energy security and environmental sustainability goals?

## ANSWER

पेोिलयम और ाकृितक गैस मंी ( ी हरदीप सह पुरी )

## MINISTER OF PETROLEUM & NATURAL GAS (SHRI HARDEEP SINGH PURI)

(a) to (e): A Statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PART (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO. *305 TO BE ANSWERED ON 10.08.2023 REGARDING 'BIODIESEL PURCHASE POLICY' ASKED BY DR.  KRISHNA  PAL  SINGH  YADAV  AND  DR.  HEENA  VIJAYKUMAR GAVIT.

(a)  to  (e):    One  of  the  critical  elements  for  enhancing  the  energy  security  of  the country  is  the  development  of  alternative  sources  of  energy  including  biofuels. Biofuels including biodiesel in India are of strategic importance as they auger well with the ongoing initiatives of the Government such as Make in India & Swachh Bharat Abhiyan and offer great opportunity to integrate with the ambitious targets of  doubling  of  Farmers  Income,  Import  Reduction,  Employment  Generation, Waste to Wealth Creation, etc.

Biodiesel  is  an  environment  friendly  sustainable  fuel  which  can  be  blended  in diesel as per BIS Standards and used in automobiles and other applications without any  modifications  in  the  engines.  The  PSU  Oil  Marketing  Companies  (OMCs) procure biodiesel from registered biodiesel manufactures which meets the prescribed criteria of Bureau of Indian (BIS) thus ensuring proper quality control. To  encourage  the  production  of  Biodiesel  in  the  country,  the  Government  had notified the Biodiesel Purchase Policy, in October, 2005, which is effective from 1 st January 2006. The criteria and standards set for procurement of biodiesel under the Biodiesel Purchase Policy inter alia include:

- i. Biodiesel manufacturers need to get their biodiesel samples approved as per BIS and certified by the OMCs. Subsequently they need to be registered as authorised suppliers for supply of biodiesel.
- ii. Biodiesel manufacturers should have their production capacity and credibility assessed by the OMCs.
- iii. Biodiesel meeting the fuel quality standards prescribed by BIS is purchased by the OMCs at the specified purchase centres.
- iv. Priority shall be given to those biodiesel producers who propose to use nonedible Tree Borne Oils (TBOs) as feedstock for producing biodiesel.

Due to challenges in harnessing TBOs such as long gestation period, poor yields, etc.,  and their subsequent conversion into biodiesel, the procurement of biodiesel by the OMCs could only start in August 2015.  Most of biodiesel procured by PSU OMCs has been produced from Palm Stearin Oil, Used Cooking Oil (UCO) and negligible quantities from TBOs.

The  Government  had  thereafter  notified  the  National  Policy  on  Biofuels  2018 (NPB) in June 2018. This policy has laid out an indicative target of achieving 5% blending of biodiesel in diesel / direct sale of biodiesel in the country by 2030.

The  measures  taken  to  create  awareness  and  encourage  participation  among farmers and other stakeholders inter alia include:

- i. Reduction in GST rate for biodiesel supplied to the OMCs for blending with diesel.
- ii. Offering  of  remunerative  prices  by  the  PSU  OMCs  for  procurement  of biodiesel.
- iii. Launch of Repurpose Used Cooking Oil (RUCO) initiative which involves collection of Used Cooking Oil (UCO) for conversion to biodiesel. This also involved playing of radio jingles / advertisements print media, etc. to give wide publicity to the initiative.
- iv. As  part  of  Azadi  Ka  Amrit  Mahotsav  (AKAM),  exhibitions  on  biofuels including biodiesel held across the country by the OMCs.
- v. The  NPB  envisages  that  farmers  will  be  encouraged  to  grow  variety  of different biomass as well as oilseeds on their marginal lands, as inter crop and as second crop wherever only one crop is raised by them under rain fed conditions.
- vi. Studies  are  being  undertaken  by  PSU  OMCs  to  analyse  the  effect  of blending  of  various  biofuels  such  as  Ethanol,  Methanol,  Dimethyl  Ether, etc., in diesel.
- vii. Celebration of World Biofuel Day on 10 th of August every year.

The details of Biodiesel procured by the PSU OMCs year-wise till June 2023 are as follows:

| Biodiesel procured by the OMCs (in Cr Litre)   | Biodiesel procured by the OMCs (in Cr Litre)   |
|------------------------------------------------|------------------------------------------------|
| Year                                           | Biodiesel Procured                             |
| 2015-16*                                       | 1.19                                           |
| 2016-17                                        | 3.59                                           |
| 2017-18                                        | 4.37                                           |
| 2018-19                                        | 8.22                                           |
| 2019-20                                        | 10.55                                          |
| 2020-21                                        | 0.51                                           |
| 2021-22                                        | 0.06                                           |
| 2022-23                                        | 6.05                                           |
| 2023-24 (April-June)                           | 11.57                                          |

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