The government is going to formulate a new bio-fuel policy to incentivise the production of clean alternative fuels in the country.

Speaking at a function to mark the World Biofuel Day, Dharmandra Pradhan, Minister of State for Petroleum and Natural Gas, said, “We will bring a new bio-fuel policy for the country which will define the incentives for the sector, recommend return on investment and minimum assurance among others.”

Crops that can be grown in arid regions of Vidarbha, Bundelkhand, Jharkhand, Bihar and Odisha will be used for promoting bio fuels. “We will be adding another ₹1 lakh crore in to the country’s economy through bio-fuels in the coming two years,” he added. The existing 450 sugar plants and corn set ups will benefit from the new bio-fuel policy, said Nitin Gadkari, Minister of Road Transport Highways & Shipping.

Gadkari also said that the government is working to promote clean fuels in the inland waterways transport.

He said, “We are going to move a Cabinet note for Inland waterways and shipping to use methanol as a fuel. This will promote clean fuels for the waterways sector.”