Commodity Online

NEW DELHI: Finally, the Indian government is taking some concrete steps to promote biofuel in the country. The government on Tuesday announced the setting up of a National Biofuel Development Board.

A press statement from the government said, the Ministry of New Renewable Energy has been given the responsibility of setting up of a National Bio fuel Development Board. The proposal for setting up of the Board including its draft Terms of Reference and composition has been submitted for necessary approvals.

The Ministry of Agriculture is providing subsidy through National Oilseeds and Vegetable Oils Development (NOVOD) Board to the farmers, Non Governmental Organizations (NGOs), individuals etc. for production of Tree Borne Oilseeds (TBOs), including bio fuel crops, under the Integrated Development of Tree Borne Oilseeds Scheme, it said.

Under this scheme, 30% credit linked subsidy is being provided, which is linked with 50% term loan to be taken from bank, and 20% beneficiary share in the form of land, labour etc.

Further, the Ministry of Rural Development has provided financial assistance to the tune of Rs.49.00 crore to 9 identified States in 2005 06 and Rs.49.50 crore to 15 States in 2006 07 for the purpose of raising jatropha/pongamia seedlings and plantation of the same under the ongoing States/Central Sector area development programmes.