Abstract
Petroleum resources are finite and therefore search for alternative is continuing all over the world. Development of bio-fuels as an alternative and renewable source of energy for transportation has become critical in the national effort towards maximum self-reliance—the corner stone of our energy security strategy. Bio-fuels like ethanol and bio-diesel being environment friendly, will help us to conform to the stricter emission norms. International experience has demonstrated the advantages of using ethanol and bio-fuel as automotive fuel. There is a lot happening in the field of bio-fuels in India but, the demand and supply scenario is uneven and hinders the bio-fuel blending program. Hence, assessment of potential demand and supply situation assumes greater importance. In this paper, we examine the current production trends and government policies and future requirements of the bio-fuel in the country. The study has highlighted the importance of the bio-fuel production and bio-fuel market prospects in the country.
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