Environmental Engineering Reference
In-Depth Information
may be a shortfall in their availability to meet the prescribed levels. The respon-
sibility of storage, distribution, and marketing of biofuels would rest with OMCs.
In the determination of biodiesel purchase price, the entire value chain com-
prising production of oilseeds, extraction of bio-oil, its processing, blending, dis-
tribution, and marketing will have to be taken into account. The Minimum Purchase
Price (MPP) for biodiesel by the OMCs will be linked to the prevailing retail diesel
price. The MPP for bioethanol will be based on the actual cost of production and
import price of bioethanol. The MPP, both for biodiesel and bioethanol, will be
determined by the Biofuel Steering Committee and decided by the National Biofuel
Coordination Committee. In the event of diesel or petrol price falling below the
MPP for biodiesel and bioethanol, OMCs will be duly compensated by the
government.
Financial incentives, including subsidies and grants, may be considered upon
merit for new and second-generation feedstocks, advanced technologies and con-
version processes, and production units based on new and second-generation
feedstocks. If it becomes necessary, a National Biofuel Fund could be considered
for providing such
financial incentives. As biofuels are derived from renewable
biomass resources, they will be eligible for various
fiscal incentives and conces-
sions available to the new and renewable energy sector from the Central and State
governments. Bioethanol already enjoys concessional excise duty of 16 %, and
biodiesel is exempted from excise duty. No other central taxes and duties are
proposed to be levied on biodiesel and bioethanol. Custom and excise duty con-
cessions would be provided on plant and machinery for production of biodiesel or
bioethanol, as well as for engines run on biofuels for transport, stationary, and other
applications, if these are not manufactured indigenously.
Intensive R&D work would be undertaken in the following areas
1. Biofuel feedstock production based on sustainable biomass with active
involvement of local communities through non-edible oilseed bearing planta-
tions on wastelands to include inter-alia production and development of quality
planting materials and high sugar containing varieties of sugarcane, sweet sor-
ghum, sugar beet, cassava, etc.
2. Advanced conversion technologies for
first-generation biofuels and emerging
technologies for second-generation biofuels including conversion of lignocel-
lulosic materials to ethanol such as crop residues, forest wastes and algae,
biomass-to-liquid (BTL) fuels, and biore
neries.
3. Technologies for end-use applications, including modi
cation and development
of engines for the transportation sector based on a large-scale centralized
approach, and for stationary applications for motive power and electricity pro-
duction based on a decentralized approach.
4. Utilization of by-products of biodiesel and bioethanol production processes such
as oil cake, glycerin, and bagasse.
In regard to research and development in the area of biofuels, a subcommittee
under
proposed in this policy comprising
Department of Bio-Technology, Ministry of Agriculture, Ministry of New and
the
'
Biofuel Steering Committee
'
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