<p>In a proposal submitted to the ministry of new and renewable energy, the industry lobby suggested the price could be increased from Rs.26.50 per litre to Rs.36.<br /><br />"A study recommends that the present procurement price of Rs.26.50 as per the bio-diesel policy should be reviewed and corrected to sustain the investment and required growth of the sector," CII said in a statement.<br /><br />The study estimates that if the industry becomes sustainable and achieves two percent growth in the blending of bio-diesel by 2011-12, it can save around Rs.3,000 crore and generate about Rs.5,500 crore of revenue for the rural economy.<br /><br />"This initiative would also help in reduction of annual green house gas emission by three million metric tonnes," the report said.<br /><br />The CII report further suggested that the government should create a suitable policy framework which may include incentives, grants and distribution mechanism to make the price of bio-diesel self-sustainable.<br /><br />According to it, the record fluctuation in oil prices has created an opportunity for easier adaptation and integration of bio-fuels in the country's energy portfolio.<br /><br />"To counter and mitigate the security threat in a dieselised economy like India, bio-diesel may be used as a true supplement to fossil diesel with appropriate technological, financial and policy interventions," the statement added.</p>
<p>In a proposal submitted to the ministry of new and renewable energy, the industry lobby suggested the price could be increased from Rs.26.50 per litre to Rs.36.<br /><br />"A study recommends that the present procurement price of Rs.26.50 as per the bio-diesel policy should be reviewed and corrected to sustain the investment and required growth of the sector," CII said in a statement.<br /><br />The study estimates that if the industry becomes sustainable and achieves two percent growth in the blending of bio-diesel by 2011-12, it can save around Rs.3,000 crore and generate about Rs.5,500 crore of revenue for the rural economy.<br /><br />"This initiative would also help in reduction of annual green house gas emission by three million metric tonnes," the report said.<br /><br />The CII report further suggested that the government should create a suitable policy framework which may include incentives, grants and distribution mechanism to make the price of bio-diesel self-sustainable.<br /><br />According to it, the record fluctuation in oil prices has created an opportunity for easier adaptation and integration of bio-fuels in the country's energy portfolio.<br /><br />"To counter and mitigate the security threat in a dieselised economy like India, bio-diesel may be used as a true supplement to fossil diesel with appropriate technological, financial and policy interventions," the statement added.</p>