There is an acute shortage of power for decentralized communities of the rural sector in India even after installing power generation capacity of about 110,000 MW. In order to meet rural energy needs, the decentralized power generation is an alternative measure and can be produced through renewable energy sources. There is tremendous potential of utilizing biomass in India, but direct use of biomass leads to inefficiency. Therefore in order to effectively utilize biomass, it is converted into biofuels such as biodiesels, ethanol, biogas and producer gas etc.