The Union Cabinet on Wednesday approved the National Biofuel Policy2018 with several amendments, the major one being the decision to advance the target of 20 per cent blending of ethanol in petrol from 2030 to 2025-26.

The policy was drafted to help in meeting the target of reducing import dependence on fossil fuels by 10 per cent from 201415 levels by the year 2022. This target is to be achieved by adopting a five-pronged strategy which includes increasing domestic production, adopting biofuels & renewables, energy efficiency norms, improvement in refinery processes and demand substitution.

National Biofuel Policy was first drafted in 2009 and then amended in 2018. The Cabinet has approved the 2018 draft with further amendments. It has allowed more feedstocks for production of biofuels to promote the production of biofuels in the country, under the Make in India program, by units located in Special Economic Zones (SEZ)/ Export Oriented Units (EoUs). It has also paved the way for export of biofuels in specific cases.