Lok Sabha Question No. 2425 (UNSTARRED), answered on 2016-08-01
Subject: Procurement of Diesel from Private Companies
Ministry: PETROLEUM AND NATURAL GAS
Asked by: A.T. (NANA) PATIL, PRATAPRAO GANPATRAO JADHAV, MANSUKHBHAI DHANJIBHAI VASAVA

## LOK SABHA UNSTARRED QUESTION No. 2425

## TO BE ANSWERED ON 1 st  AUGUST, 2016

## PROCUREMENT OF DIESEL FROM PRIVATE COMPANIES

## 2425.  SHRI A.T. NANA PATIL:

SHRI PRATAPRAO JADHAV:

SHRI MANSUKHBHAI DHANJIBHAI VASAVA:

## isVªksfy;e vkSj izkd`frd xSl ea=h

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

- (a) whether the Government has taken note that the Oil Marketing Companies (OMCs)  have  not  procured  bio-diesel  as  mandated/  required  under  the purchase policy from private companies;
- (b) if so, the details thereof along with the quantum of bio-diesel procured so far;
- (c) whether the higher officials of OMCs are not very keen to procure bio-diesel and if so, the details thereof along with the action taken by the Government against such officials;
- (d) the steps taken by the Government  to  ensure production of oil in commensurate  with  their  potential  by  the  private  companies  in  order  to reduce the import of diesel; and
- (e) the corrective steps taken/being taken by the Government in this regard?

## ANSWER

isVªksfy;e vkSj izkd`frd xSl ea=ky; esa jkT; ea=h ¼Lora= izHkkj½ ¼Jh /kesZUnz iz/kku½

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (INDEPENDENT CHARGE) (SHRI DHARMENDRA PRADHAN)

(a) to (e) :  The Ministry of Petroleum and Natural Gas had announced a Bio-diesel Purchase Policy in October 2005, under which, Oil Marketing Companies (OMCs) would purchase bio-diesel at a uniform price as may be decided by the OMCs from time  to  time,  for  blending  with  High  Speed  Diesel  (HSD)  to  the  extent  of  5%  at identified 20 purchase centres across the country.

However, OMCs could not procure biodiesel upto August, 2015 as biodiesel producers were not coming forward to supply their biodiesel at the prices decided by OMCs from time to time.

-2-

On  10.8.2015,  the  Government  allowed  the  sale  of  Bio-diesel  (B100)  by private manufacturers to bulk consumers like Railways, State Transport Corporations and other bulk consumers. Also, retailing of bio-diesel blended diesel by Public Sector Oil Marketing Companies (OMCs) has started on the same day.

As a result, the biodiesel procurement by Public Sector OMCs has started. As  on  1.7.2016,  1.32  crore  litre  Biodiesel  (B100)  has  been  procured  by  Public Sector  OMCs.    During  the  current  Financial  Year  also,  OMCs  have  finalised  a quantity of 4.01 crore litres of biodiesel for the period of April - September, 2016.

Besides, Ministry of Petroleum and Natural Gas has taken following recent initiatives to take forward the biodiesel programme :

- (i) A Steering Committee has been constituted in the Ministry to take forward the bio-fuel programme of the country.
- (ii) A  separate  Biofuel  Cell  has  been  constituted  in  Ministry  of    Petroleum  and Natural  Gas  for  dedicated  focus  on  Biofuels.    The  Cell,  besides  being  a technical  repository  on  Biofuels,  also  monitors  biodiesel  procurement  and blending by OMCs.
- (iii)    Bureau of Indian Standards (BIS) has revised the standalone Biodiesel (B100) specification and also developed specification for biodiesel blend from B6B20.

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