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India Pushes Bioenergy Growth with National Bioenergy Programme and Key Policy Measures
Team Finance Saathi
20/Dec/2024
What's covered under the Article:
- Government introduces National Bioenergy Programme to accelerate biofuel sector growth.
- PM JI-VAN Yojana supports advanced bioethanol projects with US$ 106.7 million funding.
- "No-Go" area reduction in the Bay of Bengal boosts domestic oil production and exploration.
On December 20, 2024, the Government of India notified the National Bioenergy Programme (NBP), a comprehensive initiative aimed at accelerating the growth of the bioenergy sector. This move is in line with the government's commitment to clean energy solutions, enhancing energy security, and fostering sustainable development across the nation. The programme focuses on supporting the biofuels sector, including waste-to-energy technologies, to reduce India’s carbon footprint and create a more sustainable energy future.
Key Measures for Biofuels and Ethanol Production
Since 2014, several progressive measures have been implemented to strengthen the biofuels sector in India. The government has been actively expanding feedstock options for ethanol production, ensuring a steady supply for Ethanol Blended Petrol (EBP) Programme. This initiative has significantly contributed to reducing India’s dependency on imported fossil fuels. The Ethanol Interest Subvention Schemes (EISS), designed to encourage ethanol production from molasses and grains, have further boosted the sector, providing a conducive environment for growth.
PM JI-VAN Yojana and Financial Support for Advanced Bioethanol Projects
In 2024, the government amended the Pradhan Mantri Jaiv Indhan - Vatavaran Anukool Fasal Awashesh Nivaran (PM JI-VAN) Yojana, a critical initiative aimed at supporting advanced bioethanol projects. Under this scheme, the government has allocated over US$ 106.7 million (Rs. 908 crore) for 2G bioethanol projects, including commercial-scale initiatives in Panipat, Haryana. These projects focus on using renewable feedstocks, such as agricultural residue and waste, to produce bioethanol, providing an eco-friendly alternative to traditional fuels.
Reducing CO2 Emissions with Ethanol Blending
The government’s commitment to reducing CO2 emissions is evident through the ethanol blending in petrol programme, which has successfully reduced approximately 557 lakh metric tonnes of CO2 emissions over the past decade. This significant achievement underscores the importance of ethanol as a cleaner fuel option in India’s efforts to combat climate change and improve air quality. The continued support for ethanol production is part of the broader strategy to meet the nation's green energy goals and reduce its reliance on imported crude oil.
The Oilfields (Regulation and Development) Amendment Bill, 2024
To further support India’s push for energy security and reduce import dependence, the government has introduced the Oilfields (Regulation and Development) Amendment Bill, 2024. This bill is designed to foster an investor-friendly environment and attract investment into India’s domestic oil and gas production. One of the key aspects of the bill is the reduction of the "No-Go" area in the Bay of Bengal, Indian Ocean, and Arabian Sea. The size of this restricted area has been significantly reduced from 1,366,708 square kilometres to just 24,832 square kilometres, opening nearly 99% of previously restricted areas for exploration. This move is expected to enhance the exploration and production of hydrocarbons, which is crucial for domestic energy supply.
A Vision for a Sustainable Energy Future
Through these combined initiatives, the National Bioenergy Programme, along with other policy measures, reflects India’s unwavering commitment to sustainable energy solutions. By investing in advanced bioenergy technologies and increasing bioethanol production, the government is taking significant steps to meet its green energy objectives. These policies will also help reduce greenhouse gas emissions, contributing to India's climate action goals while ensuring energy security for the future.
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