Lok Sabha Question No. 784 (UNSTARRED), answered on 2025-12-04
Subject: Promotion of Biodiesel Usage
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Kaushalendra Kumar, Shri Ramprit Mandal

## LOK SABHA UNSTARRED QUESTION No.784

TO BE ANSWERED ON 04 th  December, 2025

## PROMOTION OF BIODIESEL USAGE

## †784.    SHRI KAUSHALENDRA KUMAR: SHRI RAMPRIT MANDAL:

## पेĚोͧलयम और Ĥाक ृ Ǔतक गैस मंğी

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

- (a) the steps being taken by the Government to promote the use of biodiesel;
- (b)  the benefits farmers are getting from the biodiesel policy in the country;
- (c) the States in which biodiesel is being produced at present; and
- (d)  the details of annual revenue of the biodiesel industry in the country, State-wise?

## ANSWER

## पेĚोͧलयम और Ĥाक ृ Ǔतक गैस मंğालय मɅ राÏयमंğी ( Įी सुरेश गोपी )

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

(a) & (b) : The  National  Policy  on  Biofuels  promotes  production  and  adoption  of  various biofuels, including biodiesel, in the country. Government has taken several measures for promotion of biodiesel production 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.

The  National Policy of Biofuels through the Biodiesel Blending  programme  creates opportunities for farmers in augmenting indigenous feedstock supplies like Tree-Borne Oils (TBOs) such as Karanja, Neem, Mahua, and Pongamia from underutilized or wasteland plantations, which require minimal inputs and can grow in drought-prone areas. The policy also supports employment and rural economic activity by encouraging plantation, seed collection, and oil extraction operations.

Overall, the biodiesel ecosystem enables value addition to waste and low-value agricultural products, supports farmer diversification, improves rural livelihoods, and reduces reliance on singlecrop income sources.

(c) and (d): The  State-wise  details  of  gross  value  of  Bio-diesel  purchases  under  Biodiesel Blending Programme by Public Sector OMCs during the Financial Year (FY) 2024-25, is as given below:

| State          |   Gross Value of Bio Diesel Purchase (Rs. In Crores) |
|----------------|------------------------------------------------------|
| Andhra Pradesh |                                               282.74 |
| Bihar          |                                                59.85 |
| Delhi          |                                                31.23 |
| Gujarat        |                                               212.81 |
| Haryana        |                                               139.35 |
| Jharkhand      |                                                83.91 |
| Karnataka      |                                               318.85 |
| Kerala         |                                               208.92 |
| Madhya Pradesh |                                                55.93 |
| Maharashtra    |                                                84.46 |
| Odisha         |                                               289.13 |
| Rajasthan      |                                               210.7  |
| Tamil Nadu     |                                               168.25 |
| Telangana      |                                               472.76 |
| Uttar Pradesh  |                                               217.23 |
| Uttarakhand    |                                                 1.53 |
| West Bengal    |                                               399.41 |
| Total          |                                              3237.05 |

(Source: PSU OMCs)

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