The Government has allowed the direct sale of biodiesel (B100) for blending with high speed diesel to all consumers, in accordance with the specified blending limits and the standards specified by the Bureau of Indian Standards, with effect from 29th June, 2017. For this purpose, “Guidelines for sale of Biodiesel for blending with high speed diesel for transportation purposes-2019” have been issued vide Notification dated 01.05.2019.

Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOCL) had entered into Joint Ventures (JVs) / Limited Liability Partnerships (LLPs) to carry out jatropha plantation with the help of Gram Panchayats in Uttar Pradesh. BPCL had formed a Joint Venture (JV) Company named “Bharat Renewable Energy Ltd. (BREL)” which entered into agreement with the Panchayats to grow Jatropha / Pongamia plantations in their fallow lands.  The JV company closed down due to poor yields and high operating cost.

Similarly, IOCL had formed 'Indian Oil Ruchi Biofuels LLP', a LLP firm, to participate in `Jeevan Jyoti Yojana' Project of Government of Uttar Pradesh, for Jatropha plantation by Gram Panchayats on Panchayat wasteland. The LLP facilitated jatropha plantation in 1818 hectares.  IOCL has to exit from LLP since no seeds were made available by Gram Panchayats for biofuel production.

This information was given by the Union Minister for Petroleum and Natural Gas Shri Dharmendra Pradhan in a written reply to the Lok Sabha today.

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YB/SK

Direct sale of biodiesel permitted under regulated blending limits and standards; public-private plantation schemes faced feedstock and viability issues. The Government authorised direct sale of biodiesel (B100) for blending with high speed diesel to all consumers subject to specified blending limits and compliance with national standards, and issued Guidelines for sale of Biodiesel for blending with high speed diesel for transportation purposes. State-owned oil companies' plantation ventures with Panchayats to grow jatropha/pongamia closed or exited due to poor yields, high operating costs and non-availability of seeds from Panchayats, highlighting operational constraints in securing feedstock under the public-private plantation model.