To boost the use of bio-diesel and other energy-saving fuels, Union Minister Nitin Gadkari is batting for long-term tax holidays for manufacturers and suppliers of clean fuel-engine, ethanol and other bio-fuels.
The Centre is working on a policy to promote the use of bio-fuel. Ministry of Road and Transport is working with the Ministry of Finance on the policy. A Cabinet note on the issue is expected to be ready within a month, Road Transport and Highways Minister Gadkari told reporters on the sidelines of an event on Sustainable Fuels, organised by TERI.
“Prime Minister has directed Finance Minister (Arun Jaitley) and me to prepare a policy to promote clean fuel. I have written to FM for tax exemption to manufacturers of clean fuel engines and suppliers of such fuel for five years which can be extended to another five years,” said Gadkari.
“A Cabinet note will be floated in this regard by the end of February or early March,” he added. Promoting clean fuel like ethanol and bio-diesel has been high on the Modi-Government’s agenda as it will help the country by saving at least Rs9 lakh crore annually, which is total of all import bills on petrol, gas and crude, the Minister said.
Huge import bills were also the reason for depreciating value of the rupee, he added. “Waste can be converted into wealth. Use of clean fuel like ethanol and bio-diesel can reduce carbon dioxide emission by 95 per cent. We have taken a decision to encourage bio-fuel and alternative fuel,” Gadkari said, earlier addressing the ‘First International Conference on Sustainable Fuels for IC Engines in Emerging Nations.’
He said bio-diesel can be manufactured from non-edible oil seeds cultivated on waste land and “more research is needed in this direction.” Even releasing carbon dioxide in water bodies can promote algae cultivation through which bio-diesel can be obtained, he said, adding that huge fruit and vegetable waste and municipal waste could easily be utilised to convert them into bio CNG.
“In Wazirabad market alone, 500 to 600 tonnes of fruits go waste daily and if used in creating clean fuel, over 500 buses can run on this fuel,” he said. Promoting clean fuel will not only boost economic growth, but can have positive impact on GDP growth, he said.
Gadkari said one ethanol-powered bus, manufactured by Scania, was already running in Nagpur, while buses which can run both on water and roads would also be introduced. Stressing commitment to ‘Make in India’, he said besides this, the endeavour is also to make a ‘Pollution-free India.’