Daily Current Affairs for UPSC
India as the world’s third-largest biofuel producer
Syllabus- Economy [GS Paper-3]

Context
According to the Minister of Petroleum and Natural Gas, India has emerged as the sector’s third-largest biofuel producer.
What are Biofuels?
- Biofuels are alternative fuels made from plant and plant-derived sources.
- Example: Bioethanol, Biodiesel, Green diesel, Biogas and so on.
- Generations of Biofuels: Biofuels may be categorized into distinctive generations based on the feedstocks used and the tactics involved in their production.
- First Generation: They are crafted from food plants like corn, sugarcane, wheat, and vegetable oils.
- Second Generation: They are crafted from biomass extracted from agricultural waste or waste plant material like non-food feedstocks corn stover.
- Third Generation: These are frequently derived from algae and other microorganisms.
- Fourth Generation: They are crafted from genetically modified species crops. These consist of artificial biology and microorganisms engineered to provide particular biofuels.
National Policy on Biofuels, 2018
- The National Policy on Biofuels 2018 (amended in 2022) gives a framework for growing the use of biofuels in India to decorate strength security.
- It will permit extra feedstocks for manufacturing of biofuels.
- The Policy allows use of surplus food grains for production of ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.
- The coverage will increase the ethanol blending goal of 20% blending of ethanol in petrol to Ethanol Supply Year (ESY) 2025-26 from 2030.
- It will promote the manufacturing of biofuels in the country, under the Make in India software, by gadgets placed in Special Economic Zones (SEZ)/ Export Oriented Units (EoUs).
Significance of Biofuel Expansion
- Economic Growth: The initiative has additionally stored India about Rs. 85,000 crore in foreign exchange via decreasing crude oil imports.
- Environmental Benefits: The shift towards ethanol-primarily based fuels has caused a large reduction in CO2 emissions, which is equivalent to planting 175 million trees.
- It promotes a round economic system by converting waste into energy.
- Benefits for Farmers: Ethanol manufacturing affords an alternative market for sugarcane, maize, and surplus food grains, boosting rural earning.
- It strengthens the sugar enterprise, making it less dependent on government subsidies.
- During the Ethanol Supply Year 2023-24, Ethanol Blended Petrol (EBP) programme helped in a cost of about Rs 23,100 crore to the farmers.
Challenges in Biofuel Expansion
- Feedstock Constraints: Sugarcane-based ethanol is water-intensive, placing strain on water assets.
- Slow adoption of second-generation (2G) biofuels, as technology is still evolving and luxurious.
- Infrastructure Issues: Limited ethanol blending infrastructure, along with dedicated pipelines and storage facilities.
- Inadequate refineries and mixing stations, leading to supply chain inefficiencies.
- There are challenges in transporting ethanol, as it’s rather flammable and requires separate logistics.
Government Efforts for Biofuel Expansion
- Pradhan Mantri JI-VAN Yojana (Jaiv Indhan – Vatavaran Anukool fasal awashesh Nivaran Yojana): It promotes 2G ethanol manufacturing from agricultural waste and residues.
- GOBAR-Dhan Scheme (Galvanizing Organic Bio-Agro Resources Dhan): It promotes biogas and bio-CNG production from farm animals dung and organic waste.
- SATAT Scheme (Sustainable Alternative Towards Affordable Transportation): It promotes Compressed Bio-Gas (CBG) manufacturing as a fuel alternative, and targets the status quo of 5,000 CBG plants by 2025.
Way Ahead
- There is a need to reinforce monetary incentives for superior biofuels like 2G, 3G.
- Expand biogas and bio-CNG adoption in rural and urban shipping.
- Invest in biofuel R&D for value reduction and performance development.
Source: The Hindu
UPSC Prelims Practice Question
Q. According to India’s National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels? (2020)
- Cassava
- Damaged wheat grains
- Groundnut seeds
- Horse gram
- Rotten potatoes
- Sugar beet
Select the correct answer using the code given below:
(a) 1, 2, 5 and 6 only
(b) 1, 3, 4 and 6 only
(c) 2, 3, 4 and 5 only
(d) 1, 2, 3, 4, 5 and 6
Ans: (a)



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