96
of funds for rural employment available for many government activities within the
village areas (not only biofuel policy), so there was a shortage of funds for biofuel
activities.
Apart from the central government’s policy on biofuels, there was also a variety
of initiatives by state governments, mainly with private sector partnerships. For
example, the state of Andhra Pradesh entered into a formal agreement with Reliance
Industries to plant Jatropha on 200 acres (0.81 km2) of land at Kakinada for highquality biodiesel. The state of Chhattisgarh decided to plant 160 million saplings of
Jatropha in all of its 16 districts with the aim of becoming a biofuel self-sufficient
state by 2015, and it planned to earn Rs. 40 billion annually after 2010 by selling
seeds. In September 2007, the Hindustan Petroleum Corporation Limited (HPCL)
and the Maharashtra State Farming Corporation Ltd. (MSFCL) created a Jatropha
seed-based biodiesel joint venture with a 500 acre Jatropha plantation in the socalled degraded forest areas of the state. Indian Railways has started using biodiesel
from Jatropha for its diesel engines. However, despite these initiatives, no commercial production of biodiesel on a national scale has been recorded.
8.3.2 Status of the Indian Biofuel Market
With the gradual increase in demand for renewable energy, the biofuel sector in
India has taken the necessary steps toward large-scale commercial production of
fuel crops. With the primary objective of increasing the production of biofuels,
namely, biodiesel and bioethanol, the Government of India took the lead and formulated the National Mission on Biodiesel in July 2002. In order to avoid creating a
food–fuel conflict in the country, the government from the beginning encouraged
the use of fermented sugarcane molasses and nonedible oil seeds. So, in India ethanol is produced through fermentation of sugarcane molasses, and biodiesel is produced through transesterification of nonedible oils from Jatropha curcas, pongamia,
neem, etc.
8.3.2.1 Bioethanol from Sugarcane
Due to robust economic growth in India, transport fuel demand has also increased
at a very high rate. Moreover, demand for ethanol has also increased to meet the
blending target of 5% of total transport fuel set by the National Government in
2003. Table 8.3 shows the projected demand and supply of ethanol in the Indian
market. This clearly indicates that 5% blending seems feasible but 20% blending
only from ethanol may be quite difficult and unrealistic.
In order to meet the ethanol-based biofuel target, it would be necessary for India
to maintain a steady production level of sugarcane over the target’s time period.
However, the yield of sugarcane in India varies from an average of 77 tons/ha in
tropical states to about 52 tons/ha in subtropical states, and it also varies under
M. Elder et al.
of funds for rural employment available for many government activities within the
village areas (not only biofuel policy), so there was a shortage of funds for biofuel
activities.
Apart from the central government’s policy on biofuels, there was also a variety
of initiatives by state governments, mainly with private sector partnerships. For
example, the state of Andhra Pradesh entered into a formal agreement with Reliance
Industries to plant Jatropha on 200 acres (0.81 km2) of land at Kakinada for highquality biodiesel. The state of Chhattisgarh decided to plant 160 million saplings of
Jatropha in all of its 16 districts with the aim of becoming a biofuel self-sufficient
state by 2015, and it planned to earn Rs. 40 billion annually after 2010 by selling
seeds. In September 2007, the Hindustan Petroleum Corporation Limited (HPCL)
and the Maharashtra State Farming Corporation Ltd. (MSFCL) created a Jatropha
seed-based biodiesel joint venture with a 500 acre Jatropha plantation in the socalled degraded forest areas of the state. Indian Railways has started using biodiesel
from Jatropha for its diesel engines. However, despite these initiatives, no commercial production of biodiesel on a national scale has been recorded.
8.3.2 Status of the Indian Biofuel Market
With the gradual increase in demand for renewable energy, the biofuel sector in
India has taken the necessary steps toward large-scale commercial production of
fuel crops. With the primary objective of increasing the production of biofuels,
namely, biodiesel and bioethanol, the Government of India took the lead and formulated the National Mission on Biodiesel in July 2002. In order to avoid creating a
food–fuel conflict in the country, the government from the beginning encouraged
the use of fermented sugarcane molasses and nonedible oil seeds. So, in India ethanol is produced through fermentation of sugarcane molasses, and biodiesel is produced through transesterification of nonedible oils from Jatropha curcas, pongamia,
neem, etc.
8.3.2.1 Bioethanol from Sugarcane
Due to robust economic growth in India, transport fuel demand has also increased
at a very high rate. Moreover, demand for ethanol has also increased to meet the
blending target of 5% of total transport fuel set by the National Government in
2003. Table 8.3 shows the projected demand and supply of ethanol in the Indian
market. This clearly indicates that 5% blending seems feasible but 20% blending
only from ethanol may be quite difficult and unrealistic.
In order to meet the ethanol-based biofuel target, it would be necessary for India
to maintain a steady production level of sugarcane over the target’s time period.
However, the yield of sugarcane in India varies from an average of 77 tons/ha in
tropical states to about 52 tons/ha in subtropical states, and it also varies under
M. Elder et al.