|
|
Bio Diesel Policy Recommendations
The Economic Coordination Committee (ECC) of the Cabinet considered the summary
dated 14th February 2008, submitted by Ministry of Water & Power on “Policy Recommendations
for Use of Biodiesel as an Alternative Fuel” and approved, in-principle, the following
proposals contained in Para 4 of the Summary:
i). Ministry of Water & Power in coordination with AEDB shall be the apex coordinating
and facilitating body for the National Bio-Diesel Programme.
ii). Gradual introduction of bio-diesel fuel blends with petroleum diesel so as
to achieve a minimum share of 5% by volume of the total Diesel consumption in the
country by the year 2015 and 10% by 2025.
iii). Oil Marketing Companies (OMCs) to purchase Bio-Diesel (B-100) from Bio-Diesel
manufacturers; and sell this Bio-Diesel blended with Petroleum Diesel (starting
with B-5) at their points of sale.
iv). Ministry of Petroleum & Natural Resources shall come up with the fuel quality
standards for B-100 and blends up to B-20.
v). OGRA shall regulate the pricing mechanism of various blends of Bio-Diesel (B-5,
B-10 etc.) and ensure its cost-competitiveness with Petroleum Diesel.
vi). The Government shall provide buy back guarantees to Biodiesel producers at
a price determined by OGRA, by making it mandatory for public sector vehicles running
on diesel to use Biodiesel.
vii). All imported plant, machinery, equipment and specific items used in the production
of Biodiesel shall be exempted from Customs Duty, Income Tax and Sales Tax.
II). Pilot project would be scaled up after success.
|
|
|
