What ails Indiaʹs biodiesel programme?

With more than 95% of Indiaʹs surface transport dependent on imported fossil fuel, India has made a concerted effort to promote biofuel. The newly announced biofuel policy of India stipulates a blending target of 20% for both bioethanol and biodiesel. In the case of biodiesel, complement to fossil fuel diesel, Indiaʹs predominant transport fuel, this target is to be achieved by cultivating non-edible oil seed plants in wastelands and fallow land. In spite of best effort, very little progress has been made on the ground. As the result, the deadline for blending target of 20% for biodiesel has been postponed from 2011–2012 to 2006–2017. This paper makes an attempt to understand the factors behind the tardy progress in Indiaʹs biodiesel scene and suggests policy remedies.