Economic Coordination Committee (ECC)

DECISION

• Ministry of Water & Power in coordination with AEDB shall be the apex coordinating and facilitating body for the National Biodiesel Programme.

• Gradual introduction of Biodiesel-fuel blends with petroleum diesel so as to achieve a minimum share of 5% by volume of the total Diesel consumption in the country by the year 2015 and 10% by 2025.

• Oil Marketing Companies (OMCs) to purchase Biodiesel (B-100) from Biodiesel manufacturers; and sell this Biodiesel blended with Petroleum Diesel (starting with B-5) at their Points of Sale.

• Ministry of Petroleum & Natural Resources shall come up with the fuel quality standards for B-100 and blends up to B-20.

• OGRA shall regulate the pricing mechanism of various blends of Biodiesel (B-5, B-10 etc.) and ensure its cost-competitiveness with Petroleum Diesel.

• The Government shall provide buy-back guarantees to Biodiesel producers at a price determined by OGRA, by making it mandatory for public sector vehicles running on Diesel to use Biodiesel.

• All imported plant, machinery, equipment and specific items for use in production of Biodiesel shall be exempted from Customs Duty, Income Tax and Sales Tax.

• Pilot Project would be scaled up after success.