India Will Issue New Biofuel Policies to Cut Imports of Oil, Natural Gas and Coal

India Will Issue New Biofuel Policies to Cut Imports of Oil, Natural Gas and Coal

Lastest news! India, the world's third largest greenhouse gas unit, will soon announce a new biofuel policy to cut imports of fossil fuels such as oil, natural gas and coal.

The government aims to develop a $ 1.56 billion biofuels economy in the next two years, Oil Minister Dharmendra Pradhan said at the Renewable Energy Conference on Thursday.

India's three major state-owned oil companies have pledged a total of $ 200 million to research and develop biofuels technology, and the government has pledged to ensure return on investment, Pradhan said. 

"The roadmap for reducing crude oil imports is related to biofuels," Pradhan said. India is the world's third largest oil consumer, with the aim of reducing crude oil imports by 10% by 2022.

New Delhi also plans to reduce the carbon footprint by reducing the use of natural gas in the energy structure over the next three to four years from the current 6.5 percent to 15 percent .

The government has asked state-owned oil companies to set up ethanol plants in 12 locations in next year.

Energy consumption in India is expected to grow as the government aims for economic growth of 8%–9% this fiscal year through March 2018, against around 7% in 2016/17.

Indian Oil Corp, the country's top refiner, plans to enhance the capacity of its biofuel refineries to 100 tpd from about 12 tpd in the next two years, Chairman Sanjiv Singh told reporters at the conference.

The IOC operates three biofuel plants, investing about Rs 300 crore and expect to increase the number of these plants, Singh said .

India needs a private investment in the sector, and once the cost of production is down, the country may see some private sector involvement, Singh said .

In addition, Minister of Transport Nitin Gadkari said that the Cabinet of Prime Minister Narendra Moody will soon consider allowing the use of alternative fuels in the transport of methanol.