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The policy encourages the generation and use of biofuels such as ethanol. It primarily tries to address supply-side issues that have discouraged the production of biofuels within the country.
Even though the policy allows use of rotten food grains for biofuel production. However, presently available technology limits over 90% of biofuel production to sugarcane only. There is also a need for caution in using surplus food grain to produce ethanol. While removing the shackles on raw material supply can have definite benefits, it cannot make a significant difference to biofuel production as long as the supply-chain infrastructure that is required to deliver biofuels to the final consumer remains inadequate.
Without the above reforms India’s huge biofuel potential will continue to remain largely untapped.
By: Atul Sambharia ProfileResourcesReport error
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