Union Cabinet approves National Policy on Biofuels, 2018

The union cabinet chaired by the prime minister approved the National Policy on Biofuels, 2018, on May 16, 2018. The policy classifies biofuels into 1G, 2G and 3G to provide appropriate financial and fiscal incentives to each category. The policy also indicates a provision of viability gap funding (VGF) for 2G ethanol biorefineries to the tune of Rs 50 billion over six years in addition to tax incentives and a higher purchase price as compared to 1G biofuels.