The Hindu Business Line : Bio-diesel industry seeks clear policy

Mumbai, Jan. 11 Even though bio-diesel is widely acknowledged as the fuel of the future and green energy, the current approach and policy support of the Government to promoting this renewable form of energy is far from clear; and as a result, investors are not emboldened to enter the sunrise sector, industry representatives have argued.

The Central and State Governments should immediately come out with policies that will lay down a clear roadmap for the future, which alone will help bring in investments from big players for energy farming to ramp up feedstock supplies, a major bottleneck for the industry to grow.

This was essentially the highlight of series of recommendations following day-long deliberations industry stakeholders held here recently under the auspices of Bio diesel Society of India (BSI-Maharashtra chapter).

Issues

The meeting closely examined issues that impact the industry – right from feedstock production to processing and conversion, distribution and consumption as also fiscal imposts.

Taking the idea further, BSI has recommended that energy farming or growing of oilseeds as feedstock for bio-diesel be given the status of plantation industry (like tea and coffee) for purpose of land ceiling and the industry be treated on par with other renewables like wind, solar and biomass energy.

The meeting also suggested that land be granted for captive energy plantations on the lines of paper industry. Public-private partnership initiatives for feedstock cultivation would help rural development, according to BSI. On the fiscal side, the participants demanded that the Government exempt taxes and duties on raw materials like oilseeds and vegetable oils.

Demands

Until the domestic feedstock situation improves, oil (raw material) should be allowed for duty-free import for producing bio-diesel at competitive rates, and freer import of plant and machinery be permitted, the meeting urged. There was also demand for extending subsidy for using bio diesel for offsetting current higher cost vis-À-vis fossil-diesel, which is subsidised too.

These recommendations would be submitted to the Central Government in New Delhi and various State Governments, the BSI said.

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