The production would be taken up from non-edible oil seeds in waste or degraded or marginal lands, Union Information and Broadcasting Minister Ambika Soni said on Thursday after the Cabinet meeting.
The food-versus-fuel debate lies at the core of alternate fuel’s growth and acceptability throughout the world.
While farmers in some countries prefer to cultivate bio-diesel producing crops in agricultural land, others criticise them for misusing farm land despite knowing there is a global food shortage.
An indicative target of 20 per cent blending of bio-fuels, both for bio-diesel and bio-ethanol, by 2017 has been proposed in the national policy.
In India, biofuel is currently generated from jatropha and pongamia whereas in other countries ethanol – used as biofuel – is produced from sugarcane as well.
Soni said that the government would offer minimum support price for non-edible oil seeds with periodic revision so that fair price can be provided to the growers.
At the same time, the minimum purchase price will be offered to purchase bio-ethanol and bio-diesel. The MPP will also be revised periodically.
A national bio-fuel fund could be set up to look into issues related to financial incentives, including subsidies and grants, for second generation bio-fuels. If necessary, a National Bio-fuel Fund could be considered.
The overall policy contours will be provided by a national bio-fuel coordination committee, headed by the Prime Minister. At the same time, a national level steering committee would be set up to oversee policy implementation.
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