ADB initiated the study on the Cross-Sectoral Implications of Biofuel Production and Use with the objective of generating scientific information on biofuel production and its use to facilitate implementation of the biofuel policy by the Government of India. The broad objective of the ADB assignment is to identify the policy options available for biofuels and undertake a comprehensive analysis of the socioeconomic and environmental consequences of these options. This assignment collates scientific information and undertakes analysis on the impact of biofuel production on the economy and on various related sectors. The focus and emphasis of the report is mainly on first generation biofuels. The study will only touch upon second generation biofuels in terms of their future potential in India.