Development of Alternative Fuel Energy

The Ministry of New and Renewable Energy is supporting research, development and demonstration projects on various alternative fuels such as biofuels and hydrogen at Universities, Indian Institutes of Technology, Engineering Colleges, Public Sector Undertakings, Industries, etc. Grants upto 100 per cent of project cost to educational and research institutions and upto 50 per cent to industries is provided for undertaking research, development and demonstration projects.

The expenditure incurred on research, development and demonstration projects on biofuels and hydrogen during the last three years i.e. 2008-09 to 2010-11 is Rs 32.14 crore and is Rs 4.21 crore in the current year 2011-12 (upto 28th November, 2011).

While a target of 20% blending of biofuels in diesel and petrol by the year 2017 has been indicated in the National policy on Biofuels announced in December 2009, a mandatory target of 5% blending of ethanol with petrol and recommendatory target of 5% blending of bio-diesel with diesel is in force since October 2009. The use of hydrogen as alternate fuel or as blend with other fossil fuels is still under research and development and no time frame has so far been set for this purpose.