Infrastructure

Salient features

·         It categorises bio-fuels as Basic, Advanced and 3^rd Generation (3G) bio-fuels, to enable extension of appropriate financial incentives under each category.

·         It explores a wider variety of raw materials to be used as inputs to produce ethanol (which is to be blended with petrol).

·         Apart from sugarcane – government plans to include corn, damaged food grains, potato and even municipal solid waste as ethanol sources.

·         Considering the low price during surplus production, it allows use of surplus food grains for production of ethanol for blending with petrol.

·         With a thrust on Advanced Biofuels, the Policy indicates a viability gap funding scheme for 2G ethanol Bio refineries of Rs.5000 crore in 6 years.

·         Roles and responsibilities of all the concerned Ministries with respect to biofuels have been captured in the Policy document to synergise efforts.

Flaws

·         Octane Count – WHO has already declared 14 Indian cities as among the 20 most polluted in the world.

·         In this context, the policy is totally silent on “fuel octane count”, which has direct consequences on vehicular emissions and air quality. 

·         Untested Technology – 2G is a new untested technology and there isn’t a single plant worldwide that produces 2G ethanol on a commercial scale.

·         Considering the amount of funds needed and the risk of failure, it is surprising that the government is prioritising 2G ethanol over other aspects.  

·         Food security – The consideration for using surplus food grains is a tricky one as food supply chains might get affected if there aren’t proper checks.

·         Additionally, there is total lack of transparency in signing of MoUs with oil marketing companies for the 2G ethanol blending project.

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