Bio Diesel

MoP&NG announced a Biodiesel Purchase Policy which became effective 1st January 2006. On 10.08.2015, Government allowed direct sale of Biodiesel (B100) for blending with diesel to Bulk Consumers such as Railways, State Road Transport Corporations. On 29.06.2017 Government allowed sale of biodiesel to all consumers for blending with diesel.

Government has notified Guidelines for sale of biodiesel for blending with High Speed Diesel for transportation purposes on 30.4.2019. Through this Notification Government has granted permission exclusively for sale of biodiesel (B-100) only and not for any mixture thereof of whatever percentage.

The Biodiesel procurement by OMCs increased from 1.1 crore litres during 2015-16 to 10.56 crore litres during 2019-20.

Presently, bio-diesel is being produced in the country primarily from imported palm stearin oil. In order to phase-out palm stearin, and as a measure towards import substitution, it has been decided to promote domestically available used cooking oil (UCO) as the feedstock.

UCO has been identified as a potential raw material for biodiesel production in National Policy on Biofuels-2018. UCO can be collected from Bulk Consumers such as hotels, restaurants, canteens, etc. for conversion.

Oil Marketing Companies (OMCs) are periodicaly floating Expression of Interest (EoI) for procurement of Biodiesel produced from UCO. 

For Detailed Policy/Acts/Regulations Click here.