Lok Sabha Question No. 3348 (UNSTARRED), answered on 2026-03-12
Subject: Amendments to Biofuel Policy
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Atul Garg

## 3348. SHRI ATUL GARG:

## LOK SABHA UNSTARRED QUESTION No.3348

TO BE ANSWERED ON 12 th March, 2026

## AMENDMENTS TO BIOFUEL POLICY

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢी

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

- (a) the key amendments made to the National Policy on Biofuels, 2018, in 2022 and their impact on biofuel production;
- (b) the  various  feedstocks  identified  for  biofuel  production  and  the  manner  in  which  they contribute to sustainability and energy security;
- (c) the specific measures taken by the Government to incentivize biodiesel production, including tax benefits and blending targets;
- (d) the amendments made to the Pradhan Mantri JI-VAN Yojana for supporting advanced biofuel projects; and
- (e) the Government's long-term vision for increasing biofuel adoption and reducing dependence on fossil fuels?

## ANSWER

पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢालय मᱶ रा᭔य मंᮢी ( ᮰ी सुरेश गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI SURESH GOPI)

- (a): The Government had notified the National Policy on Biofuels (NPB) - 2018 which has been further amended in 2022. The following are the key amendments in the NPB:
- i. to allow more feed-stocks for production of biofuels,
- ii. to advance the ethanol blending target of 20% blending of ethanol in petrol to Ethanol Supply Year (ESY) 2025-26 from 2030,
- iii. to  promote the production of biofuels in the country, under the Make in India program, by units located in Special Economic Zones (SEZ)/ Export Oriented Units (EoUs),
- iv. to add new members to the National Biofuel Coordination Committee (NBCC),
- v. to grant permission for export of biofuels in specific cases, and
- vi. to delete/amend certain phrases in the Policy in line with decisions taken during the meetings of National Biofuel Coordination Committee.

These amendments have enabled Public Sector Oil Marketing Companies (OMCs) to achieve ethanol blending target of successive years, with record blending of more than 1000 crore litres in the last ESY 2024-25. Public Sector OMCs have commenced blending 20% ethanol with petrol in the current ESY 2025-26 starting November 2025.

(b): The  National  Policy  on  Biofuels  has  identified  various  feed-stocks  for  biofuel  production which, inter-alia ,  includes  damaged  food  grains  like  broken  rice,  food  grains  unfit  for  human consumption,  food  grains  during  surplus  phase  as  declared  by  the  National  Biofuel  Coordination Committee (NBCC), and agriculture residues (Rice straw, cotton stalk, corn cobs, saw dust, bagasse etc.).  This  Policy  also  promotes  and  encourages  use  of  feedstock  such  as  corn,  cassava,  rotten potatoes, maize, sugarcane juice & molasses etc.

Feed-stock diversification has supported the environmental sustainability efforts of the Government. It reduces dependence on crude oil imports while saving foreign exchange and promotes the domestic agriculture  sector.  So  far,  from  ESY  2014-15  up  to  February  2026,  Ethanol  Blended  Petrol  (EBP) Programme  has  resulted  in  net  CO2  reduction  of  approximately  869  lakh  metric  tonne  and substitution of more than 289 lakh metric tonnes of crude oil.

(c): Government has taken several measures for promotion of biodiesel production to achieve the indicative target of blending 5% biodiesel in diesel/direct sale of biodiesel by the year 2030, which inter-alia  include  prescribing  indicative  target  of  blending  of  biodiesel  in  diesel  /  direct  sale  of biodiesel  under  the  National  Policy  on  Biofuels,  notifying  of  "Guidelines  for  sale  of  biodiesel  for blending  with  high  speed  diesel  for  transportation  purposes-2019",  reduction  of  GST  rate  for procurement of biodiesel for blending programme from 12% to 5%, etc.

(d): Government  had  notified  the  'Pradhan  Mantri  JI-VAN  (Jaiv  Indhan  -  Vatavaran  Anukool fasal  awashesh Nivaran) Yojana' for providing financial support for setting up Second Generation (2G) ethanol  projects  in  the  country  using  lignocellulosic  biomass  and  other  renewable  feedstock. The  scheme was amended in August 2024 for expanding eligibility to cover 'bolt-on' plants and 'brownfield projects', replacing '2G ethanol' with 'Advanced Biofuels' and to extend the timelines of the scheme by five years i.e., from 2023-24 to 2028-29.

(e): The Policy aims to increase usage of biofuels in the energy and transportation sectors of the country  during  the  coming  decade.  The  Policy  aims  to  utilize,  develop  and  promote  domestic feedstock  and  its  utilization  for  production  of  biofuels  thereby  increasingly  substitute  fossil  fuels while contributing to National Energy Security, Climate Change mitigation, apart from creating new employment  opportunities  in  a  sustainable  way.  Simultaneously,  the  policy  also  encourage  the application of advance technologies for generation of biofuels.

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