By Apoorva Mandhani
Minister of State for Petroleum and Natural Gas Dharmendra Pradhan announced that the government is working on formulating a biofuel policy for encouraging its use in transport to tackle the problem of air pollution in India. Further, intending to catalyse the use of biofuel by the automobile industry, the Centre is also looking to bring in an investment of Rs. 1 lakh crore to the sector within a year. It has now become imperative to assess the current policy in order to identify a concrete roadmap for the transition towards a bio-based economy, which certainly is the need of the hour.
These renewable biomass resources promote sustainable development and can supplement conventional energy sources to meet the rapidly increasing energy demand of the developing countries. Besides, biofuels also aid in meeting the energy needs of Indias vast rural population in an environmentally benign and cost effective manner while, at the same time, reducing dependence on import of fossil fuels.
So does India have a Biofuel policy? Let us see what does India’s Biofuel policy entails.
Tracing the trajectory of India’s Biofuel policy
The Power Alcohol Act of 1948 was the beginning of Indias acknowledgement and recognition of blending petrol with ethanol. The prime objectives of this action and policy were threefold to bring down the price of sugar, trim wastage of molasses and reduce dependence on petrol imports. This Act was repealed in the year 2000 and then again in January 2003, the Ethanol Blended Petrol Programme (EBPP) was launched in nine States and four Union Territories. The EBPP promoted the use of ethanol for blending purposes (with gasoline). However, due to ethanol shortage during 2004-05, the blending mandate was made optional in October 2004 and resumed in October 2006 in 20 States and 7 Union Territories. Thereafter, with the announcement of the National Biofuel Policy on 24 December 2009, the Government released a comprehensive National Policy on Biofuels formulated by the Ministry of New and Renewable Energy (MNRE).
The Policy encouraged production of Biofuels from non-edible oilseeds especially from waste, degraded and marginal lands. However, this policy also focused on ethanol production from molasses. This process is plagued by price volatility, resulting from the demand for molasses-based alcohol from the portable and chemical industries. The Government had further planned to consume greener fuels by blending at least 20% biofuels by 2017. In order to encourage this, the Government, in 2014, had fixed the price of ethanol in the range of Rs. 48.50-49.50 per litre, irrespective of the locations of the oil marketing companies across India. Despite these efforts, the target set by the National Biofuel policy has not been achieved so far.
Research is the need of the hour
Intensive research and analysis are unquestionably essential for improved understanding of the capabilities and acceptance of bio-based energy options in the country. This is visible through the example of Jatropha. A few years back, all stakeholders displayed a keen interest in Jatropha as it can grow well in arid or semi-arid tropical conditions. In addition to this, it can produce seeds bearing near about 21% to 48% of Oil. Further, Jatropha was favoured as it was believed that it could be on the right side of the food-versus-fuel debate since it grows in arid or semi-arid areas. However, this dream of the miracle biofuel collapsed soon as the actual seed production was lesser than the estimates, giving rise to several questions on its feasibility as a raw material for the commercial use.
Therefore, several experts believe that intensive research is required before the government develops and formulates any further policy or plans investment for biofuel sector. Moreover, the requirement of 20% ethanol blending has been considered to be over-ambitious by experts. It has been found that even 10% blending demands are greater than the ethanol available for use. Therefore, it is imperative to promote alternative feedstocks which can supplement ethanol production for blending requirements.
A need to revamp the policy
Experience in this sector has shown that the governments initiatives have not translated into results on the production and commercialisation fronts. A revamp of the policy is, therefore, a need of the hour. It is imperative to improve technology, infrastructure, transportation and logistics for the production of Bioenergy and Biofuel, and to develop a strong policy initiative for its extraction, use and exploration.
The revamp, however, should not just be towards the supply side, but also towards demand side factors such as providing consumption support. One can also adopt policies like promoting flex-fuel vehicles through reduced registration fees and road tax exemptions. Similarly, support is provided to purchase biofuels, co-products and flex-fuel vehicles. Incentives on the lines of the ones approved by Ministry of New and Renewable Energy(MNRE) for the dissemination and promotion of battery-operated vehicles (BOV) will also help in augmenting the biofuel industry. Only a holistic approach to the industry would provide energy security, economic growth and prosperity, thus ensuring a better quality of life for all.
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