India eases biofuel export rules from SEZ, export oriented units

Mongabay/Manoj Shukla

The government announced on March 22 that if the biofuel is produced using imported feed stock, exports of biofuel from special economic zones (SEZ) and export-oriented units are permitted for both fuel and non-fuel purposes without any restrictions.

Within days of placing limitations on their imports, the government on August 28, 2018, had restricted the export of biofuels as well in a bid to increase the domestic capacity. Biofuel imports and exports both call for a licence. Ethyl alcohol, petroleum oil, oils derived from bituminous materials, bio-diesel, and mixes are examples of biofuels.

The Directorate General of Foreign Trade (DGFT) has amended that notification of 2018 "to the extent that export of biofuel from special economic zones/export oriented units, are allowed for fuel as well as non-fuel purpose without any restriction when produced using only imported feed stock".

Special economic zones and export oriented units are meant specifically for export purposes.

India has an ambitious biofuel roadmap under its national biofuel policy. By 2025-26, the centre aims to achieve 20% ethanol blending in petrol. The initial target to achieve 20% blending was 2030. The target of petrol supplies with 10% ethanol blending was achieved in June last year, before the original schedule of November 2022.

At the national level, the oil and petroleum ministry plans to set up 12 bio-refineries to produce fuel from items including crop stubble, plant waste and municipal solid waste.

(With inputs from PTI)