The National Policy on Biofuels promotes production and adoption of various biofuels, including biodiesel, in the country. Government has taken several measures for promotion of biodiesel production which inter-alia include prescribing indicative target of blending of biodiesel in diesel / direct sale of biodiesel under the National Policy on Biofuels, notifying of “Guidelines for sale of biodiesel for blending with high speed diesel for transportation purposes-2019”, reduction of GST rate for procurement of biodiesel for blending programme from 12% to 5%, etc. This information was shared in the Lok Sabha by Minister of State for Petroleum and Natural Gas Suresh Gopi while responding to a question on the steps being taken to promote the use of biodiesel.
The State-wise details of gross value of Biodiesel purchases under Biodiesel Blending Programme by Public Sector OMCs during the Financial Year (FY) 2024-25, is as given below:
| State | Gross Value of Biodiesel Purchase (Rs. in Crores) |
|---|---|
| Andhra Pradesh | 282.74 |
| Bihar | 59.85 |
| Delhi | 31.23 |
| Gujarat | 212.81 |
| Haryana | 139.35 |
| Jharkhand | 83.91 |
| Karnataka | 318.85 |
| Kerala | 208.92 |
| Madhya Pradesh | 55.93 |
| Maharashtra | 84.46 |
| Odisha | 289.13 |
| Rajasthan | 210.70 |
| Tamil Nadu | 168.25 |
| Telangana | 472.76 |
| Uttar Pradesh | 217.23 |
| Uttarakhand | 1.53 |
| West Bengal | 399.41 |
| Total | 3237.05 |
(Source: PSU OMC)
The National Policy of Biofuels through the Biodiesel Blending programme creates opportunities for farmers in augmenting indigenous feedstock supplies like Tree-Borne Oils (TBOs) such as Karanja, Neem, Mahua, and Pongamia from underutilized or wasteland plantations, which require minimal inputs and can grow in drought-prone areas. The policy also supports employment and rural economic activity by encouraging plantation, seed collection, and oil extraction operations.
Overall, the biodiesel ecosystem enables value addition to waste and low-value agricultural products, supports farmer diversification, improves rural livelihoods, and reduces reliance on singlecrop income sources.
