| Date: |
31-07-2015 |
| Subject: |
IOCL, BPCL, HPCL begin process of maiden purchase of biodiesel for blending with diesel |
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NEW DELHI: State-run fuel retails have begun the process of their maiden purchase of biodiesel for blending it with diesel. Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation have invited tenders for procurement of 850 million litres of biodiesel from local manufacturers.
According to the tender document, IOCL will procure about 40 per cent of the total quantity while the balance will be shared between the other two firms. The biodiesel will have to be delivered at multiple locations across the country from August through March 2016. The technical and price bids are to be submitted online by August 19.
The maiden purchase will help retailers discover the price of biodiesel, produced from vegetable oil or animal fat, and get ready for the blending when it becomes mandatory, an oil industry executive said.
The National Policy on Biofuels had proposed a 20 per cent blending ratio for both biodiesel and ethanol by 2017. So far the government has made it mandatory only to blend 5 per cent ethanol, produced mainly from sugar and corn, with petrol. An uncertainty with regard to the availability of biodiesel has also slowed the progress towards making it mandatory for blending.
In a bid to reduce the use of fossil fuels, which contribute directly to air pollution, the government has been encouraging use of ethanol and biodiesel by fossil fuel retailers.
Three months ago, the government had removed a 12.36 per cent excise duty levied on ethanol supplied for blending with petrol and raised the import duty on sugar to 40 per cent from 25 per cent as part of steps to support the local sugar industry.
India imports 80 per cent of the crude oil it consumes and a 5 per cent biodiesel and ethanol substitution can result in substantial savings in foreign exchange. With rising pollution impacting public health and becoming a hotly debated national issue, India has been pushing for cleaner fuel, including increased use of gas for cooking and transportation, and aiming to install record capacity in renewable energy.
Source : economictimes.indiatimes.com
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