Parliament Question: Promotion of Biodiesel Usage

**Executive Summary** This document is the response to Unstarred Question No. 784 in the Lok Sabha, answered on December 4, 2025, regarding the promotion of biodiesel usage in India. The Minister of Petroleum and Natural Gas outlines the government's initiatives, the benefits for farmers, and provides state-wise data on biodiesel production, and gross value of bio-diesel purchases under the Biodiesel Blending Programme by Public Sector OMCs during the Financial Year (FY) 2024-25. **Key Points / Main Content** * **Government Initiatives for Biodiesel Promotion:** * The National Policy on Biofuels promotes the production and adoption of various biofuels, including biodiesel. * Measures include indicative targets for blending biodiesel in diesel and direct sale of biodiesel. * Notification of guidelines for the sale of biodiesel for blending with high-speed diesel (2019). * Reduction of GST rate for procurement of biodiesel for blending programmes from 12% to 5%. * **Benefits to Farmers:** * The Biodiesel Blending Programme creates opportunities for farmers to supply indigenous feedstock like Tree-Borne Oils (TBOs) from underutilized or wasteland plantations. * The policy supports employment and rural economic activity through plantation, seed collection, and oil extraction operations. * It enables value addition to waste and low-value agricultural products, supports farmer diversification, improves rural livelihoods, and reduces reliance on single-crop income sources. * **State-wise Biodiesel Industry Data (FY 2024-25):** * Provides a table of State-wise details of gross value of Bio-diesel purchases under Biodiesel Blending Programme by Public Sector OMCs. * Telangana has the highest gross value of biodiesel purchases (Rs. 472.76 Crores), followed by West Bengal (Rs. 399.41 Crores) and Karnataka (Rs. 318.85 Crores). * The total gross value of Bio Diesel purchases is Rs 3237.05 Crores. **Impact Analysis** **Stakeholder: Farmers** * **Impact:** * Increased income opportunities through the cultivation and sale of biodiesel feedstock (Tree-Borne Oils). * Diversification of income sources and reduced reliance on single crops. * Enhanced rural employment opportunities in plantation, seed collection, and oil extraction. * **Action Required:** * Engage in the cultivation of Tree-Borne Oils (Karanja, Neem, Mahua, Pongamia) on underutilized or wasteland plantations. * Participate in seed collection and oil extraction operations to supply to biodiesel production facilities. **Stakeholder: Public Sector Oil Marketing Companies (OMCs)** * **Impact:** * Required to procure biodiesel for blending with high-speed diesel as per government guidelines. * Play a key role in driving the demand for biodiesel and supporting the biofuel ecosystem. * **Action Required:** * Adhere to the indicative targets for blending of biodiesel. * Procure biodiesel from suppliers for the Biodiesel Blending Programme. **Stakeholder: Government** * **Impact:** * The promotion of biodiesel production and adoption helps in the reduction of reliance on fossil fuels. * The National Policy on Biofuels through the Biodiesel Blending programme contributes to environmental sustainability. * **Action Required:** * Monitor the progress of the Biodiesel Blending Programme and take necessary measures to promote the adoption of biofuels. * Provide policy support to farmers and Public Sector OMCs involved in the biodiesel ecosystem.

Key Entities Referenced