Bio Energy Karnataka > Bio-Fuel Policy > Karnataka State Bio-Fuel Policy

Karnataka State Bio-Fuel Policy

India is one of the countries, with high usage of traditional fuels like coal, petroleum etc. About 85 percent of the nation’s demand of oil products is being imported, so the foreign exchange collection is being spent in large amounts and this is fatal to the nation’s financial progress and stable development. Domestically, there are limitations for the use of solar energy and wind energy as alternatives for petroleum products. In this regard, biofuelsare a ray of hope to reduce the quantity of fuel import by using them as alternatives for traditional fuels like petroleum.India is one of the countries, with high usage of traditional fuels like coal, petroleum etc. About 85 percent of the nation’s demand of oil products is being imported, so the foreign exchange collection is being spent in large amounts and this is fatal to the nation’s financial progress and stable development. Domestically, there are limitations for the use of solar energy and wind energy as alternatives for petroleum products. In this regard, biofuelsare a ray of hope to reduce the quantity of fuel import by using them as alternatives for traditional fuels like petroleum.Karnataka is one of the fastest developing states in the country. Especially, the population at Bengaluru city is growing at a rate of about 3.5 percent and Bengaluru is known as the Information Technology capital of India. Already, there are 28 lakh vehicles in Bengaluru and each day, approximately 1250 vehicles get registered. This galloping development induces air pollution and also leads to increase in the quantity of fuel import. The melting of the snow in the Himalayas and climate fluctuation is evidence to the global temperature changes. The government has announced the Karnataka state Biofuel Policy – 2009 as an appendix to this notification, realizing that it is more suitable to convert the biofuel manufactured from the seeds and molasses available in our country and states, into renewable fuel. Karnataka state Biofuel Policy will come into effect from 1st March, 2009 onwards.Karnataka state biofuel development board will be formed under the chairmanship of the honorable chief minister for supervising the implementation of the Karnataka state biofuel policy. The executive committee will be led by the additional chief secretary to the government and development commissioner. This committee will look after the day to day activities of the committee. The committee will have a senior officer as managing director for policy exposition.

1. Introduction
India is one of the countries, with high usage of traditional fuels like coal, petroleum etc. About 85 percent of the nation’s demand of oil products is being imported, so the foreign exchange collection is being spent in large amounts and this is fatal to the nation’s financial progress and stable development. Domestically, there are limitations for the use of solar energy and wind energy as alternatives for petroleum products. In this regard, biofuelsare a ray of hope to reduce the quantity of fuel import by using them as alternatives for traditional fuels like petroleum.

1.1 Increase in fuel problems: Karnataka is the fastest growing state in India. Especially, the population at Bengaluru is growing at a rate of 3.5 percent and Bengaluru is known as the IT capital of India. Already, there are 22,79,170 two-wheelers and 5,26,855 cars and each day, approximately 850 two-wheelers and 400 cars get registered. This galloping development induces air pollution and also leads to the increase in fuel import. The melting of the snow in the Himalayas and climate fluctuation is evidence of global temperature changes. Therefore, it is more suitable and beneficial to convert the biofuel available from seeds and molasses in our country and states, into renewable fuel.

1.2 Benefits of biofuel:

a) About 20 percent of alternate biofuel mixture may bring about a minimum of change in the engine of the motor vehicle or a change may not at all be necessary. More than 20 percent of biofuel mixture may necessitate a slight change in the engine.

b) The usage of biofuel will reduce the amount of hydrocarbon, carbon monoxide etc. released to the environment by vehicles.

c) There is no sulphur in biofuels and these fuels are odorless; there is 10 percent of oxygen which helps in complete combustion of the fuel. It has a high cetane number which improves the fuel combustion.

d) Unlike the greenhouse gases which lead to the increase in global warming, biofuel is a neutral substance, and is environment friendly.

e) Biofuel is carbohydrate (ethanol) or oil (biodiesel) based. Carbohydrate based (ethanol) biofuel can be grown very easily and can be commercialized. But, while associated with the usage of land, due to lack of food grains, fuel production from this source receives less priority. Oil (biodiesel) based fuel production is more attractive.

1.3 Biofuel produced from bio-waste can be defined as fluid-form or gas-form. This can be used in place of or along with diesel, petrol or traditional fuel in machines.

1.4 Biodiesel or bio ethanol: The proposed policy is classified into two kinds of renewable biofuels. (a) Biodiesel and (b) Bio ethanol.

(a) Methyl or ester ethyl manufactured from plant oil or animal fat can be defined as biodiesel. Only non-edible plant based oil can be considered within the scope of this policy. This plant based oil can be manufactured only from non-edible oil seeds grown in infertile patches of land and land unsuitable for cultivation. This purpose is clarified with the intention that the state’s food grain collection is not affected. For some local purposes, where trans-esterification is not required, in such cases the plant based oil can be directly used as an internal replacement for biodiesel.

(b) Ethanol produced from substances with sugar content like sugarcane, beetroot, molasses and substances with starch content like maize, moss etc. and sugarcane peels, fire-wood waste etc., agricultural and forest –based wastes is defined as bio ethanol (biodiesel). Sugarcane and green waste molasses are considered in this policy.1.5 Biofuel plant varieties:

Growth and development of important tree product oil-seed varieties that grow in Karnataka such as Jatropa (kaadu haralu), Pongemia (honge), Neem, Simarouba and mahuva (hippe) in the dry lands and infertile lands of the state. The oil extracted from the seeds of Honge, Jatropa and neem can be converted to biodiesel. The oil content in the seeds of these trees is as follows.

Plant name Botanical name Oil content
Jatropa Jatropa Curcas 25-30
Pongamia Pongamia pinnata 27-30
Neem Ajadichta Indica 20-25
Simarouba Simarouba glauca 60-75
Mahuva (hippe) Madhuka Indica 30-35

Today, oil production is mainly based on the seeds from such trees and is unsuitable for consumption. These oils are sold in unorganized local markets and they are used for lighting lamps, herbal medicines, dyes and leather factories. If people can be convinced about using these oils as biofuels and about the increased financial benefits, then we can obtain more financial facilities through biofuel.

1.6 Bio ethanol production in our state: Karnataka boasts of extra sugar production which is about 2.52 to 3.00 million metric tons (MMTs), only 1.2 MMTs sugar is used out of this. Due to this additional production, there is a drop in the prices of sugar and sugar-based products. This can be converted to ethanol and price stability can be maintained, as well as the interests of the sugarcane growers can be protected. There are 52 sugar factories in Karnataka and collectively, have the capacity to grind about 1.85,750 TCD of sugarcane. Annually, 200 million litres (MLtr) of alcoholis being produced. Ethanol can be directly produced after separating the sugarcane required to produce the annual 6,00,000 MMT sugar. 400 MLTR ethanol can be produced from 5 MMT sugarcane. There is a huge demand for ethanol oil in large industries. Ethanol production should be of good quality. The excise department should facilitate the initiation of more and more distilling units. Only after fixing the limit for sugar production, permission can be given to use the additional sugarcane directly for ethanol production. If ethanol production from molasses is encouraged, the growing of non-edible oil seeds in fertile lands can be avoided.

2. Framing of the policy by the Government of India.

2.1 India has signed the Kyoto Protocol. Biofuel is an equipment of Clean Development Mechanisms. The commercialization of the carbon credit production substances collected by the usage of biofuel can be done in a beneficial manner. This also reduces the amount of carbon dioxide released into the environment.

2.2 The central government has already permitted the mixing of about 5 percent of biofuel with petroleum oil. Also, Bureau of Indian Standards has already agreed for the mixing of about 5 percent of ethanol gasoline and this is in effective progress.

2.3 The government of India plans to increase this quantity of mixture to 10 percent by the year 2017. It plans to increase up to 5 percent by the end of 2010 and up to 10 percent by 2017 and more than 10 percent after 2017. The government of Karnataka plans to achieve the use of 10 percent biofuel with petroleum by the end of 2017, in line with the national planning.

3. Exposition of the Karnataka State Biofuel Policy.

3.1 Using only non-edible oil seeds for the production of biofuel. Reserving edible oil seeds for cooking only.

3.2 Non-edible oil seeds can be sown mainly in dry lands, infertile lands, land unsuitable for cultivation, forest lands in the verge of extinction, in lands owned by the government or private persons. Food security will not be compromised because the growing of non-edible oil seeds in lands that grow food grains is not encouraged.

3.3 Oilcakes obtained after the extraction of oil, should be encouraged to be used as bio manure.

3.4 The government should take up the production of these oil seeds with private/public partnership. For example, the growth of different varieties of oil seeds can be encouraged by giving lands to private parties on long-term contract basis.

3.5 Collecting these seeds in the rural areas and small towns of the state, and encouraging the conversion to oil in a time bound and decentralized manner.

3.6 Encouraging the communities, women self-help groups and local consumer associations engaged in the traditional oil seeds collection and/or oil production.

3.7 Provision of facilities by the state government to organizations (government and private organizations) having suitable expertise to increase the production of biofuel and motivate research.

3.8 Establishment of the required administrative and financial systems by the state government to execute all of the above programmes.4.The Karnataka State Biofuel Development Board (KSBFDB) will be formed under the chairmanship of the Honorable chief minister, for managing the supervision of the implementation of the biofuel policy of the Karnataka government. The implementation of the biofuel policy and day to day activities will be managed by the executive committee led by the additional chief secretary to the government and development commissioner. The committee will have a senior officer as managing director.

4.1 Karnataka state Biofuel task force, formed on 12.09.2013 will continue as an independent organization. This task force will give suggestions to the government and Karnataka state Biofuel Development Board regarding the Biofuel Policy and programmes. The chairman of the said task force is the member of the Karnataka state Biofuel Development Board.

5. Implementation techniques:

5.1 Revenue Department and Forest Departments shall identify and notify the useless and dry land unsuitable for cultivation owned by the state government/private parties. The list of such lands shall be prepared with the approval from village Panchayat, Taluk and District Agricultural Departments.

5.2 Inviting industrialists for establishment of industrial units in Karnataka for biofuel processing and production, by advertising in the media. Encouraging the industrialists by giving them enough incentives along with the discounts allowed in the Karnataka state Industrial Policy currently.

5.3 Encouraging contract-based cultivation system, depending on the availability of land required for the cultivation of non-edible plant oil seeds production and establishment of related industry. Allowing the industries to enter into agreements with farmers who own the land or with government (if land is owned by government).

5.4 Organizing the growers for contract basis cultivation system just like wine production, jerkins etc. Taking up activities like community organization, training and capacity enhancement at the same time.

5.5 Non-edible oil-product seed saplings shall be grown by the Agriculture and Forest Departments or private industrialists, as per the need.

5.6 The collection and processing centers will be established at cluster levels in the concerned areas. These centers will manage the imparting of knowledge about seed collection, quality examination, technical subjects and payment to farmers.

5.7 Co-ordination of the various state and central government programmes like National Employment Assurance Scheme, Basin Development Department, National Afforestation Project etc. which are in existence with local, national and international association, with this programme.

5.8 If necessary, the Karnataka State Land Revenue regulation will also be amended just like the amendment made to the Land Revenue regulation at Rajasthan (regarding the distribution of useless land for establishing biofuel based industries and processing units). The land can be distributed to industries on contract basis. Tenders will be invited from industrialists for consideration, regarding the distribution of government land.

5.9 The biofuel park at Hassan will be strengthened and if required, a biofuel park will be established in each sector. Agriculture and Horticulture Universities will participate in the management of different plant varieties and/management of various models of processing units. If such processing units are established at Taluk level by small and very small industries, such model units can be used by fee payment.

5.10 Agricultural insurance companies will be instructed to extend suitable insurance facility for non-edible oil seeds plantations.

5.11 Separate subsidy will be distributed for the programmes of the Karnataka State Biofuel Development Board in the State Budget for Village Development and Panchayat Raj  department. This subsidy will be provided for all activities of the said committee including administrative, management, incentives, research and development programmes, quality control etc.

5.12 Incentives and tax benefits will be separately notified by the state government for feed stock, machinery, products, raw materials etc. in line with the Central government policy. Produced oil price will also be considered in order to provide suitable rates for the farmers who grow oil product oil seeds and to encourage industries that establish processing centers. Transport companies will also be given incentives in order to encourage use of biofuel.

Click here for Karnataka State Biofuel Policy

Click here for Karnataka Biofuel Finance Ministry Notification

Click here for Karnataka Biofuel Development Board Formation Information