Indian Economy News

Government policies to accelerate the growth of the Bio Energy sector

The Government of India has notified the National Bioenergy Programme (NBP) to promote bioenergy and waste-to-energy technologies, supporting clean energy solutions, enhancing energy security, and fostering sustainable development. Since 2014, several measures have been implemented to accelerate the biofuels sector, including expanding feedstock for ethanol production, administering price mechanisms for sugarcane-based ethanol under the Ethanol Blended Petrol (EBP) Programme, and introducing various Ethanol Interest Subvention Schemes (EISS) for ethanol production from molasses and grains. Additionally, the Pradhan Mantri Jaiv Indhan - Vatavaran Anukool Fasal Awashesh Nivaran (PM JI-VAN) Yojana, amended in 2024, aims to provide financial support for advanced bioethanol projects using renewable feedstocks. Over US$ 106.7 million (Rs. 908 crore) has been approved for 2G bioethanol projects, including commercial-scale initiatives in Panipat, Haryana. 

The government has also introduced the Oilfields (Regulation and Development) Amendment Bill, 2024 to boost domestic oil and gas production and reduce import dependence. The bill is designed to attract investments, foster an investor-friendly environment, and support the exploration and production of all hydrocarbons. As part of this initiative, the "No-Go" area in the Bay of Bengal, the Indian Ocean, and the Arabian Sea has been reduced from 1,366,708 square kilometres to 24,832 square kilometres, opening nearly 99% of previously restricted areas for exploration. These efforts have reduced approximately 557 lakh metric tonnes of CO2 emissions over the last 10 years through ethanol blending in petrol by Public Sector Oil Marketing Companies. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.