NEW DELHI: The government may announce a modified biofuel policy next month. A group of ministers (GoM), headed by agriculture minister Sharad Pawar, has arrived at a consensus on the policy and has proposed some changes on its earlier draft.
“The GoM would take the final call on the controversial policy in its next meeting on January 29,” minister of state for new and renewable energy (MNRE) Vilas Muttemwar told ET. The GoM has already met twice and has proposed some changes in the draft apart from seeking some clarifications.
The changes would be incorporated to dispell any doubts in the minds of farmers and other stake holders about the new initiative, an officials involved in the development said. The ministry for new and renewable energy has suggested setting up of a national biofuel development board and formulation of the national biofuel policy for the promotion of biofuel as an alternate source of energy.
The new policy also proposes minimum support prices (MSPs) for farmers engaged in the production of bio-fuel crops like jatropha, karanjaseeds and oil-bearing materials. The rural development ministry, meanwhile, had demanded a gross budgetary support of Rs 1,340 crore to support jatropha cultivation in 400,000 hectare of wasteland over a period of five years.
The new and renewable ministry claims that the government could save foreign exchange worth Rs 20,000 crore once the policy on biofuels is adopted. The policy envisages replacement of 10% of the petroleum products requirement of the country with biofuels by 2012.
Concerns were, however, raised by some NGOs and socialists about the viability of the scheme as there are concerns about food security involved. “No one is clear yet on the implications of a strong bio-fuel policy which is likely to cut into our food security concerns. Secondly, the government, given its present unconcern for sugarcane farmers might let the sugar factories play with the lives of biofuel crop farmers,” said an NGO spokesperson.
“The GoM would take the final call on the controversial policy in its next meeting on January 29,” minister of state for new and renewable energy (MNRE) Vilas Muttemwar told ET. The GoM has already met twice and has proposed some changes in the draft apart from seeking some clarifications.
The changes would be incorporated to dispell any doubts in the minds of farmers and other stake holders about the new initiative, an officials involved in the development said. The ministry for new and renewable energy has suggested setting up of a national biofuel development board and formulation of the national biofuel policy for the promotion of biofuel as an alternate source of energy.
The new policy also proposes minimum support prices (MSPs) for farmers engaged in the production of bio-fuel crops like jatropha, karanjaseeds and oil-bearing materials. The rural development ministry, meanwhile, had demanded a gross budgetary support of Rs 1,340 crore to support jatropha cultivation in 400,000 hectare of wasteland over a period of five years.
The new and renewable ministry claims that the government could save foreign exchange worth Rs 20,000 crore once the policy on biofuels is adopted. The policy envisages replacement of 10% of the petroleum products requirement of the country with biofuels by 2012.
Concerns were, however, raised by some NGOs and socialists about the viability of the scheme as there are concerns about food security involved. “No one is clear yet on the implications of a strong bio-fuel policy which is likely to cut into our food security concerns. Secondly, the government, given its present unconcern for sugarcane farmers might let the sugar factories play with the lives of biofuel crop farmers,” said an NGO spokesperson.
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