The Policy aims at mainstreaming of bio-fuels and therefore, envisions a central role for it in the energy and transportation sectors of the Country in coming decades. The Policy will bring about accelerated development and promotion of the cultivation, production and use of bio-fuels to increasingly substitute petrol and diesel for transport and be used in stationary and other applications, while contributing to energy security, climate change mitigation, apart from creating new employment opportunities and leading to environmentally sustainable development.

The goal of the Policy is to ensure that a minimum level of bio-fuels become readily available in the market to meet the demand at any given time. An indicative target of 20% blending of bio-fuels, both for bio-diesel and bio-ethanol, by 2017 is proposed. Blending levels prescribed regarding bio-diesel are intended to be recommendatory in the near term.

"To start with we can aim at achieving 10% blend of bio-diesel with petrol and diesel, which will bring about substantial reduction in the greenhouse gas emission and gradually increase blending of bio-diesel with petrol and diesel," said the BDAI President.

The bio fuel section can further increase production of bio-fuel to 100 Cr liters within 12 months of blending mandate. It is widely agreed that such increase in bio-fuel blend in petrol and diesel, particulate emission will also reduce considerably by approx20%, as compared to the current position.

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