Biofuel production and consumption in India is at its nascent stage and is evolving. The Government of India (GOI) approved the National Policy on Biofuels on December 24, 2009.
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Required Report - public distribution
GAIN Report Number: IN1159
Biofuel production and consumption in India is at its nascent stage and is evolving. The Government of
India (GOI) approved the National Policy on Biofuels on December 24, 2009. The policy proposes a
target of 20 percent blending of biofuel both for bio-diesel and bio-ethanol by 2017. India?s biofuel
strategy continues to focus on use of non-food resources; namely sugar molasses for production of
ethanol and non-edible oils for production of biodiesel. The government?s current target of 5 percent
blending of ethanol in petrol has been partially successful in years of surplus sugar production and
unfilled when sugar production declines. Since commercial production of biodiesel in India (through
jatropha) is small, large scale blending of biodiesel with conventional diesel has not yet started.
The Government of India approved the National Policy on biofuels on December 24, 2009. The biofuel
policy encourages use of renewable energy resources as alternate fuel to supplement transport fuels and
proposed an indicative target of 20 percent blending of biofuel (bio-diesel and bio-ethanol) by 2017.
Presently, the government is unable to implement compulsory blending of 5 percent ethanol in petrol.
However, with an outlook of bumper sugarcane and sugar production in 2011/12, the government is
likely to renew its focus and strongly implement the mandatory 5 percent ethanol blending in petrol
provided the Union Cabinet takes a decision on the purchase price of ethanol for the Ethanol Blending
Production of biodiesel in India is commercially insignificant and will take a long time to be
demonstrated as economically viable biofuels. The government?s plan to blend 20 percent of biodiesel
with conventional diesel by 2011/12 is improbable due to the unavailability of high yielding drought
tolerant jatropha seeds and a lack of sufficient jatropha seeds to produce bio-diesel.
However, biomass available in the country can and has been playing an important role as fuel for sugar
mills, textiles, paper mills, and small and medium enterprises (SME). In particular there is a significant
potential in breweries, textile mills, fertilizer plants, the paper and pulp industry, solvent extraction
units, rice mills, petrochemical plants, etc. to harness biomass power.
India is the fifth largest primary energy consumer (per international energy annual) and the fourth
largest petroleum consumer in the world. A growing population, increasing per capita income,
infrastructural development and rapid socio-economic development has spurred an increase in energy
consumption across all major sectors of the Indian economy. It is estimated that India meets 80 percent
of its total oil consumption through petroleum and petroleum product imports. Given limited domestic
energy resources, escalating global crude oil prices, and growth in domestic consumption of petroleum
products, India?s oil import expenditure has increased. Expenditure on the import of petroleum
products (Chart 1) in fiscal 2010/11 is currently estimated at over $ 110 billion, up $24.3 billion over
the previous year, and almost five times the value in fiscal 2003/04. Consequently petroleum
consumption (Chart 2) in India has also gone up from 91 million tons in Indian Fiscal Year (IFY)
1998/99 to 138 million tons in IFY 2009/10 and is expected to grow to over 142 million tons in IFY
Chart 1: Import of Crude Oil and Value of Petroleum Products
Source: Petroleum Planning and Analysis Cell, Government of India (GOI)
Chart 2: Consumption of Petroleum Products
Source: Petroleum Planning and Analysis Cell, Government of India (GOI)
*: Estimated for 2010/11
The average consumption of petroleum products in India is estimated as (petroleum consumption):
Transport (Petrol, Diesel, CNG, Aviation Fuel) : 51 percent
Industry (Petrol, Diesel, Fuel Oil, Naphtha, Natural Gas): 14 percent
Commercial and Others: 13 percent
Domestic (LPG and Kerosene): 18 percent
Agriculture (Diesel): 4 percent
In terms of end-use, energy demand across the transport sector is likely to be higher (roads being the
dominant source of transport in India carry almost 90 percent of the countries passenger traffic and 65
percent of its freight), as growth in the economy, rises in domestic spending levels, and improving road
infrastructure have led to increases in new vehicle registrations and ownership (especially four wheel
vehicles). The on-road vehicle population in India (industry estimate) in last five years has increased
from 49 million to more than 65 million vehicles in 2009 and is expected to cross 120 million by 2015
assuming motor vehicle population grows at 8 to 10 percent per year.
Diesel and petrol (gasoline) based oils meet more than 95 percent of the requirement for transportation
fuel, and the demand has been expected to grow by 6 to 8 percent per year during the 11th Five Year
Plan (2007-12). The current growth in transport activity and the consequent increase in expenditure and
consumption of petroleum products are posing serious concerns for the environment.
Given that India is the fourth (energy data) largest global contributor to carbon emissions, the GOI
transport policy is targeting EURO-III and IV norms for vehicles, which in turn would require adoption
of clean and green fuel. The government is seriously concerned for economic, environmental (India?s
carbon emissions are growing at the rate of 3.2 percent annually) and energy security and is looking for
alternate fuels to meet energy demand.
With an aim to meet the above objectives, the Union Cabinet has finally approved the National Policy
on biofuels on December 24, 2009 (PIB press release). Endowed with significant potential for
generating energy through renewable resources, the GOI is promoting and encouraging production and
use of i) ethanol derived from sugar molasses/juice for blending with gasoline and ii) biodiesel derived
from non-edible oils and oil waste for blending with diesel.
POLICY AND PROGRAM: ?INDIA?S BIOFUEL POLICY?
The Government of India (GOI) approved the National Policy on Biofuels on December 24, 2009
SALIENT FEATURES OF INDIA?S BIOFUEL POLICY
The creation of a National Biofuel Steering Committee (NBSC) under the Prime Minister to
provide policy guidelines.
Strengthen India?s energy security by encouraging the use of renewable energy resources to
supplement transport fuels. A 20 percent target for blending of biofuel for both biodiesel and
bioethanol is proposed.
Meet the energy needs of a vast rural population in India to stimulate rural development and
create employment opportunities.
Address global concerns about containment of carbon emissions through the use of environment
Derive bio-fuel from non-feed stock that would be raised on degraded or wastelands that are not
suited to agriculture, thus avoiding a possible conflict of fuel verses food security.
Facilitate and bring about optimal development and utilization of indigenous biomass feedstock
for the production of biofuels. The policy also envisages development of a new generation of
more efficient biofuel conversion technologies based on new feed stocks.
A Minimum Support Price (MSP) mechanism to ensure a fair price for bio-diesel oilseed
growers. The implementation of the proposal would be considered carefully after consultation
with stake holders, central and state governments and then by Biofuel Steering Committee and
finally decided by National Biofuel Coordination Committee.
Oil Marketing Companies have proposed to purchase bio-ethanol at the Minimum Purchase
Price (MPP) based on the actual cost of production and the import price of bio-ethanol. In the
case of biodiesel, the MPP should be linked to the prevailing retail diesel price.
If necessary, the GOI proposes to consider creating a National Biofuel Fund for providing
financial incentives, including subsidies and grants, for new and second generation feed stocks,
advanced technologies and conversion processes, and production units based on new and second
Bring bio-fuels under the ambit of ?Declared Goods? by the Government so as to ensure its
unrestricted movement within and outside the States.
Except for a concessional excise duty of 16 percent on bioethanol, no other central taxes and
duties are proposed to be levied on bio-diesel and bio-ethanol.
Thrust for innovation, (multi-institutional, indigenous and time bound) research and
development on bio-fuel feedstock production including second generation biofuels.
Biofuel technologies and projects would be allowed 100 percent foreign equity through
automatic approval route to attract Foreign Direct Investment (FDI), provided biofuel is for
domestic use only, and not for export. Plantations of non-edible oil bearing plants would not be
open for FDI participation.
For more information on ?India?s Biofuel Policy? please follow the link (biofuel policy)
The National Biofuel Policy proposes to set up a National Biofuel Coordination Committee (NBCC)
headed by the Prime Minister. Given the role of different agencies and ministries in the biofuel
program, the role of the NBCC to provide high level coordination, policy guidance and review on
different aspects of biofuel development, promotion and utilization becomes more imperative. The
committee would meet periodically to review progress and monitor the biofuel program. The policy
also supports development of the Biofuel Steering Committee headed by the Cabinet Secretary to
oversee implementation of its policies on regular basis.
Various state governments will work closely with respective research institutions, forestry department,
universities etc for development and promotion of biofuel programs in the respective states. A few
states (http://www.pcra-biofuels.org/whois.htm) have drafted policies and set up institutions for
promoting bio-fuel in their states. In order to deal with different aspects of biofuel development and
promotion in the country, several ministries have been allocated specific roles and responsibilities such
Ministry of? Role
New and Policymaking and overall coordination concerning biofuels. Undertake Research and
Renewable Development (R&D) on various applications of biofuels
Petroleum and Responsible for marketing bio-fuels as well as development and implementation of
Natural Gas pricing and procurement policy
Agriculture R&D of biofuel feedstock through ICAR and IARI (sweet sorghum, jatropha,
pongamia, and non-edible oilseeds). Undertake jatropha plantation in non-forest land.
Rural Plantation of jatropha on wastelands. Integrate bio-diesel program with rural
Development development schemes (such as Mahatma Gandhi National Rural Employment
Guarantee Scheme). Coordinate R&D with other department/agency
Science and Support research on biofuel crop through bio-technology
Road Transport Plantation along highway and use biofuel blended fuel. Work with automobile
and Highway manufacturers association in India for engine modification, emission norms etc.
Railways Undertake plantation of jatropha over wastelands along railway track and trials of bio-
diesel blended fuel on railway engines.
Environment and Ensure implementation of jatropha and tree-borne oilseeds plantations in forest
Forest wastelands; get Central Pollution Control Board to monitor health and environmental
Ethanol is produced in India from sugarcane molasses for blending with petrol. Beginning January,
2003, GOI mandated the use of 5 percent ethanol blend in petrol through its ambitious Ethanol Blending
Developments in EBP
Date Action Comments
January, Ministry of Petroleum and Natural Partially implemented due to the unavailability of
2003 Gas (MoPNG) made 5 percent ethanol (due to low sugarcane production in 2003/04
ethanol blending (Gazette on EBP ) and 2004/05)
in petrol (gasoline) mandatory across
9 States and 5 Union Territories
September, Resurgence in sugarcane production Oil Marketing Companies (OMC) contracted for 1.4
2006 in 2005/06 and 2006/07 led the GOI billion litres of ethanol for EBP at Rs 21.50/litre from
to mandate 5 percent ethanol Nov 2006 to Nov 2009. Only 540 million litres of
blending in gasoline across 20 states ethanol supplied till April 2009 due to short supply of
and 8 Union Territories subject to sugar molasses. The GOI deferred implementation
commercial viability due to a short supply of sugarcane in 2007/08
September, The Union Cabinet approved the GOI deferred the plan again due to short supply of
2008 National Biofuel Policy. Five percent sugarcane and sugar molasses in 2008/09.
blending became mandatory across
all states in the country.
The third phase of implementing Blending target of 10 percent under present
EBP envisaged the blending ratio to circumstances seems to be distant reality.
be increased to 10 percent, with a
targeted 20 percent blending by
Ethanol and alcohol production in India depends on the availability of sugar molasses (a byproduct of
sugar production). Since sugarcane production in India is cyclical, ethanol production also varies, thus
not assuring the optimum supply levels needed to meet the demand at a given time. Lower sugar
molasses availability and consequent higher molasses prices affect ethanol cost of production, thereby
causing disruption in the supply of ethanol for the blending program at pre-negotiated fixed ethanol
Presently, the Ministry of Petroleum and Natural Gas, GOI has not been able to implement compulsory
blending of 5 percent ethanol in petrol (gasoline) due to disagreement between different ministries over
the compulsory 5 percent EBP. There is disagreement over the ethanol blending program (EBP) and the
interests of potable liquor and chemical makers. There is also opposition to the proposed increase in the
price oil companies pay for buying ethanol to Rs 27 per litre from the earlier price of Rs 21.50 per litre.
Further, there is apprehension towards the possibility of diverting food grains for the manufacture of
ethanol due to the government?s likely adoption of food security law proposed by the National Advisory
To resolve the ongoing issue, the GOI established an expert committee on ethanol pricing in July, 2010,
and was asked to recommend a long term formula for fixing the price of ethanol. The committee came
up with a draft report in October 2010 recommending the ethanol price that was not agreed upon by
other members. The issue stands unresolved till date.
Expanding ethanol supply
Currently, the government does not allow the use of imported ethanol for the EBP program, as the focus
is on developing domestic capacities.
Ethanol is manufactured directly from sugar molasses but given the projection for higher
sugarcane production in India for 2011/12 (upswing in production cycle), the use of sugarcane
juice (on experimental basis) for ethanol production seems to be a viable option especially under
conditions of sugarcane glut in the country.
The GOI is offering subsidized loans (through sugarcane development funds) to sugar mills for
the creation of an ethanol production unit. The loan would cover a maximum of 40 percent of
the project cost.
Given the limited scope of bringing additional area under water intensive sugarcane cultivation,
fluctuations in supply and pricing of ethanol could be stabilized through the use of alternate
crops. Public and private institutions can promote the use of alternate crops such as sweet
sorghum, sugar beets or sweet potatoes, to supplement domestic ethanol production, though the
efforts to produce ethanol from these feed stocks are at experimental stage.
Higher taxes and levies across different states have impacted the EBP. Rules and regulations [high
excise duty (presently, there is central excise duty of Rs 750/- per ton on molasses which works out to
30 to 50 percent ad valorem, whereas on industrial alcohol the central excise duty is 16 percent ad
valorem), inter-state charges etc] applicable to the control of the potable alcohol industry use are equally
applicable for ethanol blending with petrol, thereby severely constraining its availability and utilization
for the EBP.
The GOI launched the National Bio-diesel Mission (NBM) identifying jatropha curcas as the most
suitable tree-borne oilseed for bio-diesel production. The Planning Commission of India had set an
ambitious target covering 11.2 to 13.4 million hectares of land under jatropha cultivation by the end of
the 11th Five Year Plan (2011/12). The central government and several state governments provide fiscal
incentives for supporting planting of Jatropha and other non-edible oilseeds. Several public institutions,
state biofuel boards, state agricultural universities and cooperative sectors are also supporting the
biofuel mission in various capacities.
Developments in NBM
Date Action Comments
April, Demonstration phase 2003 to 2007: The Ministry of Public & private sector, state
2003 Rural Development appointed as nodal ministry to government, research institutions
cover 400,000 hectares under jatropha cultivation. (Indian and foreign) involved in the
This phase also proposed nursery development, program achieved varying degrees of
establishment of seed procurement and establishment success.
centres, installation of a trans-esterification plant,
blending and marketing of bio-diesel
October, MoPNG announced a bio-diesel purchase policy in Cost of bio-diesel production higher (20
2005 which OMC?s would purchase bio-diesel across 20 to 50 percent) than purchase price. No
procurement centres across the country to blend with sale of bio-diesel.
high speed diesel w.e.f January 2006. Purchase price
set at Rs 26.5 per litre
2008 Self Sustaining Execution phase 2008 to 2012: Lack of large scale plantation,
Targeted to produce sufficient biodiesel for 20 conventional low yielding jatropha
per thcent blending by the end of the XI (2008-12) five cultivars, seed collection and extraction
year plan infrastructure, buy-back arrangements,
capacity and confidence building
measures among farmers impeded the
progress of this phase.
2010 An estimated 0.5 million hectares has been covered The government may have to offer
under jatropha cultivation of which two-thirds is fiscal incentives to growers to adopt
estimated to be new plantation, requiring two to three better agronomic practices during the
years to mature first 2-3 years of plantation
development besides marketing and
price support mechanism to encourage
the biodiesel program
The GOI?s ambitious plan of producing sufficient bio-diesel by 2011/12 (marketing year
October/September) to meet its mandate of 20 percent blending with diesel is looking like a distant
reality given the unavailability of sufficient feedstock (jatropha seeds) and lack of considerable research
and development to evolve high yielding drought tolerant jatropha seeds.
Per a recent policy brief paper published by the National Centre for Agricultural Economics and Policy
Research (NCAP), around 3.21 million tons of biodiesel would be required from an estimated area of
3.42 million hectares to meet a target of 5 percent blending by the IFY 2011-12. The above projection
assumes a) rise in demand for diesel (@7.5 percent/annum since 2004-05) and b) considers jatropha to
be a major feedstock for biodiesel (80 percent biodiesel requirement to be met through jatropha) with an
average seed yield of 2.5 tons/hectare and 30 percent biodiesel recovery rate. The diesel demand in
country by 2011-12 is projected at 64.19 million tons (76.5 billion liters).
Other issues such as smaller land holdings, ownership issues with the government or community owned
wastelands, very little progress made by state governments to meet large scale jatropha plantations, and
negligible commercial production of bio-diesel has stuck the efforts and investments made by both
private and public sector companies.
Given the slow pace of jatropha planting and with reports of most of the bio-diesel companies in India
working at very low capacity and some even lying idle, the GOI was contemplating to fix a higher price
of Rs 34 per litre (compared to Rs 26.5 /litre last year) for the purchase of bio-diesel (please refer our
previous GAIN report IN1058 for more information) through Oil Marketing Companies. Industry views
this move as support to bring back the idle companies in running condition. The price is believed to
have been mutually agreed to by the GOI and industry representatives. However, recently, industry and
stakeholders have recommended a higher price tag (Rs 36 per litre) for purchase of biodiesel.
India has 330 distilleries which produce over 4 billion litres of rectified spirit (alcohol) per year. Of the
total distilleries, about 120 distilleries have the capacity to distillate 1.8 billion litres (an additional
annual ethanol production capacity of 365 million litres was built up in last three years after government
provided funds to sugar mills) of conventional ethanol per year and meet the demand for 5 percent
blending with petrol. Currently, India produces conventional bio-ethanol from sugar molasses and
production of advanced bio-ethanol is in its nascent phase (research and development).
Table 1: Conventional Bioethanol Production and Distribution (million liters)
Calendar Year 2006 2007 2008 2009 2010 2011 2012
Opening Stock 483 747 1,396 1,673 1,283 1,085 1,049
Production 1,898 2,398 2,150 1,073 1,435 1,934 2,130
Imports 29 15 70 320 150 50 100
Total Supply 2,410 3,160 3,616 3,066 2,868 3,069 3,279
Exports 24 14 3 3 3 10 10
Industrial Use 619 650 700 700 720 750 775
Potable Liquor 745 800 850 880 900 950 1010
Blended petrol 200 200 280 100 50 250 300
Other Use 75 100 110 100 110 110 110
Total Consumption 1639 1750 1940 1780 1780 2010 2095
Ending Stocks 747 1,396 1,673 1,283 1,085 999 1,024
Total Distribution 2,410 3,160 3,616 3,066 2,868 3,069 3,279
Production Capacity (Conventional Fuel)
Number of Biorefineries 115 115 115 115 115 115 115
Capacity (billion lit?) 1.5 1.5 1.5 1.5 1.5 1.5 1.8
Feedstock Use (1,000 MT)
Feedstock A (000? tons) 7,910 9,992 8,958 4,469 5,981 8,060 8875
Source: FAS/New Delhi Estimates based on information from Trade Sources
With an outlook of bumper sugarcane and sugar production in 2011/12, the government is likely to
renew its focus and strongly implement the mandatory 5 percent ethanol blending in petrol provided the
Union Cabinet takes a decision on the purchase price of ethanol for EBP. Further, sugar mills may
divert their stocks for ethanol production to offset falling prices of sweetener, which in turn would
provide supplementary income to the distilleries and would ensure farmers a better price for sugarcane.
Short supplies of sugar molasses in preceding years constrained ethanol production and consequent
higher prices made it unviable to supply ethanol to petroleum companies at the negotiated prices.
Higher sugarcane and sugar production in 2010/11 has raised ethanol production and improved total
ethanol supply to offset short (opening) stocks.
The strong growth in consumption of ethanol across the chemical industry, the potable liquor industry
and EBP is expected to raise the total ethanol consumption over 2 billion litres in 2011/12. Ethanol
supply for EBP is unlikely to be constrained given the improved supply situation. According to industry
and trade sources, ethanol availability during 2011/12 is forecast at 300 million litres, against the target
of 1 billion litres set by the industry. Ethanol consumption for EBP in 2010/11 has been raised by 200
million litres from 50 million litres in 2009/10 mostly due to improved supply of molasses and steady
demand of ethanol from competing industries. During 2009/10, higher market prices of ethanol were
attractive for the suppliers to divert their supplies from EBP.
India imports ethanol only to meet shortfalls in demand during years of low sugar production. The
demand is mostly for consumption across potable liquor and chemical industries and not for fuel
purpose. Exports of ethanol are negligible, however, a small volume of ethanol exports (approx 41,000
litres during first three quarters of Calendar Year 2010) were noted for Ghana, Netherland, Tanzania,
Saudi Arabia, Nepal, Liberia, Sri Lanka, U.A.E, Bhutan, Malaysia and other African countries.
Although there are no quantitative restrictions on the import of biofuels, high duties (Table 2) on tariff
lines make imports economically unviable. The GOI does not provide any financial assistance for
exports of biofuels (biodiesel and ethanol). However, current trade regulations allow duty free imports
of feed stocks for re-export by certified export oriented units.
Table 2: Import duty on biofuels (percent ad valorem on CIF value)
ITC HS Tariff Number Total Import duty (percent)
2207.20 Denatured Ethyl Alcohol and Spirits (including ethanol) 28.64
3824.90 Chemical products not elsewhere specified (including biodiesel) 28.64
The end stocks for the forecast year (2012) are likely to recover to 1.2 billion litres, up 125 million litres
over current year?s estimate. Tight end stocks are the result of a steady growth in consumption.
Commercial production of biodiesel in India (through jatropha) is small, with estimates varying from
140 to 300 million litres per year. There are about 20 large capacity biodiesel plants (10,000 to 200,000
tons per year) in India that produce biodiesel from edible oil waste (unusable oil fractions), animal fat
and non-edible oils. The biodiesel produced is sold to the unorganized sector (irrigation pumps,
agricultural usage, diesel generators etc) and to experimental projects carried out by automobiles and
transport companies. However, as per industry sources, there has been no commercial sale of biodiesel
to state owned transport companies except for trial runs. Additionally, there has been no commercial
sale of biodiesel across the biodiesel purchase centres (set up by GOI) as the government advised
biodiesel purchase price of Rs 26.5 (58.75 cents) per litre is still below the estimated biodiesel finished
production cost (Rs 30 to Rs 40 per litre / 66-89 cents per litre). Lack of feedstock supply (jatropha
seeds), higher wage rates and inefficient marketing channels are among few of the major factors that
have contributed to higher production cost.
In order to revive and accelerate the biodiesel industry, a recent study taken up by the industry
recommends the present procurement price of biodiesel to be reviewed and raised up to a level which is
sustainable and realistic and suggests to ensure average procurement price of jatropha seeds at realistic
level such that farmers do not shift land from ?food? to ?fuel? crop.
Establishment and promotion of Jatropha plantations is a state subject. Several corporates, petroleum
companies and private companies have entered into a memorandum of understanding with state
governments to establish and promote jatropha plantations on government wastelands or contract
farming with small and medium farmers. However, only a few states have been able to actively
promote jatropha plantation despite the government?s incentives.
Research and development activities (experimental or pilot trials by select industry groups and
government?s research institutes) are being carried out to develop suitable technologies for production
of advanced biofuels from wood biomass, agricultural and forest waste, municipal solid waste
conversion, microalgae and photosynthetic organisms. Given technological challenges, commercial
production of advanced biofuels would take a long time before its being demonstrated as economically
Biomass for heat and power
The Ministry of New and Renewable Energy, GOI, is implementing the biomass power program with
the objective of harnessing grid quality power from biomass resources through various conversion
technologies along with optimizing power generation from bagasse produced in sugar mills. The
benefits include its renewable nature, wide adaptability, carbon neutrality and the potential to provide
large productive employment in rural areas. The current potential for power generation from surplus
agriculture and forestry residues is estimated at 16,881 Mega Watts (MW) Equivalent (Table 3). The
optimum cogeneration capacity installed in the Indian sugar mills is one of the highest among all the
major sugar producing countries of the world. With modernization of new and existing sugar mills the
surplus power generation through bagasse cogeneration in the country?s 550 sugar mills is estimated at
5000 MW if these mills were to adopt technically and economically optimal levels of cogeneration for
extracting power from the bagasse produced by them. Thus the total estimated biomass power potential
(biomass power) is about 24,581 MW.
The availability of biomass in India is estimated at about 500 million tons per year covering residues
from agriculture, agro-industrial, forestry and plantations. Around 120-150 million tons of surplus
agro-industrial and agricultural residues (a survey by Ministry of New and Renewable Energy, GOI,
indicated that 15-20 percent of total crop residues could be used for power generation, without altering
their present uses) per year can be made available for power generation; which as per the Ministry is
estimated at 18,000 MW. Biomass (non-fossilized and biodegradable organic material originating from
plants, animals and micro-organisms) availability in the country can and has been playing an important
role as fuel for sugar mills, textiles, paper mills, and small and medium enterprises (SME). In
particular; there is a significant potential in breweries, textile mills, fertilizer plants, paper and pulp
industry, solvent extraction units, rice mills, petrochemical plants, etc.
The GOI has initiated several programs and schemes for promoting renewable energy sources, the
details of which may be accessed from www.mnre.gov.in
Table 3: India?s Biomass based Commercial Energy Achievement
Sources/Systems Estimated Achievements during Cumulative
Potential 2010-11 Achievement
(up to 31/01/2011)
1 Biomass Power 16,881 MW 143.50 MW 997.10 MW
(Agri-residues and plantations)
2 Biomass Power Cogeneration - 61.19 MW 282.07 MW
3 Biomass Power Cogeneration 5,000 MW 257 MW 1603.03 MW
4 Waste to Energy 2,700 7.50 MW 72.46 MW
5 Biomass Gasifier - 6.72 MW eq 128.16 MW eq
6 Family Type Biogas Plants 12 Million 73,281 units 4.32 million units
Source: Ministry of New and Renewable Energy, GOI
MW eq: Megawatts equivalent