The national policy on bio-fuels approved by Ministry of New and Renewable Energy. Calls for bio-diesel production from non-edible oil seeds in waste /degraded / marginal lands and blending at least 20 percent biofuels in diesel and petrol by 2017.

The Policy aims at mainstreaming of biofuels and, therefore, envisions a central role for it in the energy and transportation sectors of the country in coming decades. The Policy will bring about accelerated development and promotion of the cultivation, production and use of biofuels to increasingly substitute petrol and diesel for transport and be used in stationary and other
applications, while contributing to energy security, climate change mitigation, apart from creating new employment opportunities and leading to environmentally sustainable development.