For the development of Biofuels, a National Policy on Biofuels has been announced in the year 2009. The Government, is implementing the Ethanol Blended Petrol (EBP) Programme under which, Oil Marketing Companies sell ethanol blended petrol with percentage of ethanol up to 10% as per BIS specifications, depending upon its availability. This was stated by Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy and Mines in a written reply to a question in the Lok Sabha on July 27th.
In order to improve the availability of ethanol, the Government on 10.4.2014 introduced the administered price mechanism for procurement of ethanol under EBP Programme. The Government also allowed procurement of ethanol produced from cellulosic and lignocellulosic feedstock, including petrochemical route.
The Minister further stated that to encourage production of Biodiesel in the country, the Government announced the Biodiesel Purchase Policy in October, 2005, which became effective from 1st January 2006. The Government has permitted the direct sale of Biodiesel (B-100) for blending with High Speed Diesel to all consumers, in accordance with the specified blending limits and the standards specified by the Bureau of Indian Standards, the Minister added.