The government is prepared to pay a higher offtake price to producers of biofuel than it does for fossil fuels in a bid to boost the use of clean energy, Petroleum Minister Dharmendra Pradhan said on Wednesday.
Addressing the Delhi Energy Dialogue conclave here organised by Ashden India, he also said that the government is prepared to loan entrepreneurs up to Rs 1 crore for setting up biofuel plants.
Noting that state-run Indian Oil Corp has agreed to give offtake guarantees to bio-gas producers, Pradhan said: “For bio-fuels, the offtake amount works out to a little more than for the traditional one which factors in the price of crude oil, refining…but we are ready to give this extra amount to promote renewable energy.”
“Government is committed to any amount for green energy…entrepreneurs can get loan of up to Rs 1 crore,” he said, adding that the Union Budget 2018-19, presented last month, had announced incentives for “waste-to-wealth” conversion projects, including the Gobar Dhan scheme focused on producing bio-CNG.
Pradhan announced last week that the government will soon bring out a National Biofuels Policy for a sector poised to become an economy worth Rs 1 lakh crore. Read More