Retail Sale of Bio-diesel Likely to Be Permitted in UP

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August 24, 2022

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by Brajendra K Parashar (Lucknow News/Hindustan Times) Currently, the retail sale of biodiesel directly to consumers is not permitted in UP though no additional permission or licence is required to be obtained for production and storage of such fuel in the state —

Uttar Pradesh government’s new bioenergy policy is expected to permit retail sale of bio-diesel and its blending with high-speed diesel by consumers and transporters to use the same as fuel in automobiles.

People dealing with the issue said the draft policy, which was in public domain already, seeks to provide for laying down a procedure for the retail sale of biofuel directly to consumers.

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Prior to the central government’s notification of April 30, 2019, the producers could sell biodiesel only to oil companies, as per the formula fixed by the government and they were not allowed to sell it directly to any organization like the Railways or any other transporter or individual.

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“The new energy policy that we are working on will lay down the procedure for the retail sale of biodiesel to consumers and also regulate such sale to curb misuse,” he added.

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The new policy, according to the draft, would focus on promoting establishment of residue-based plants based on agricultural residues to produce bio-CNG, bio-coal etc in the state. The move is also expected to provide a lasting solution to the environmental issues arising from the burning of crop residue by farmers.

To ensure that such plants do not fall short of crop residue as the feed, the government will set up catchment areas from where assured feed will regularly be supplied to neighbouring plants only.

“Besides, cultivation of some specific crops and plants like jatropha, arrandi, neem etc will also be promoted to provide alternative feed to plants when there is shortage of crop residues,” the draft policy says.

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The sugar industry in UP, which is among the leading cane-producing states, is being seen as ideally positioned for setting up CBG producing facilities because of assured supply of feedstock. READ MORE

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