fiscal deficit. Diesel, the largest consumed petro-product in India is
also largely used in rural areas for agricultural purposes as well as meeting other energy needs. Cheaply available kerosene is being mixed with diesel and used in place of pure diesel. This is not only causing misuse of subsidized kerosene, damage to plant and machinery using it but also
committing unlawful activities. Biofuels generated and used in rural areas may provide employment, energy; lesser dependency on diesel, climate improvement, food security, improvement in living standards and thus stopping migration of people towards urban areas. In India, Jatropha biodiesel may be a potential energy source even for public distribution system but it can result in food vs fuel conflict also. This study shows that meeting rural energy needs with Jatropha biodiesel will ensure overall sustainable development in India.