UP govt issues draft guidelines for production, sale of biodiesel

NEDA has invited public comments and suggestions on the draft guidelines for production, storage, distribution and sale of biodiesel in the state after the government recently issued the Bioenergy Policy 2022

LUCKNOW The retail sale of indigenous biodiesel (B100) directly to consumers will soon be permitted in Uttar Pradesh with the Yogi Adityanath government having already issued draft guidelines in this regard, said officials dealing with the issue.

Biodiesel is derived from vegetable oils, animal fat, residual edible cooking oils and is used as a fuel in different motor vehicles. (Pic for represenation)

The New and Renewable Energy Development Agency (NEDA), the UP government’s nodal body for the purpose, has invited public comments and suggestions to the draft guidelines for production, storage, distribution and sale of biodiesel in the state after the government recently issued the Bioenergy Policy-2022.

“We have floated draft guidelines for production and sale of biodiesel in UP and the government will soon issue final guidelines incorporating the suggestions that are received from the stake holders,” said project officer Ajay Singh.

The guidelines, he pointed out, would pave way for regulated retail sale of indigenous biodiesel in UP apart from providing a market to biodiesel ethanol producers.

Biodiesel is derived from vegetable oils, animal fat, residual edible cooking oils and is used as a fuel in different motor vehicles.

At present, the retail sale of biodiesel directly to consumers is not permitted in UP though no additional permission/licence is required for production and storage of such fuel in the state. Some states already provide for retail sale of biodiesel directly to consumers.

Prior to the central government’s notification of April 30, 2019, producers could sell biodiesel only to oil companies, as per the formula fixed by the government and they were not allowed to sell it directly to any organization like the Railways or any other transporter or individual.

“After the Centre’s notification of April 30, 2019, many states permitted direct sale of biodiesel, but UP is yet to give any such permission and put a regulatory mechanism in place,” another official pointed out.

The draft guidelines lay down the procedure for the retail sale of biodiesel to consumers and also regulate such sale to curb misuse.

The guidelines say that a registered organization can sell biodiesel to retail or bulk consumers after getting permission from the departments concerned. The storage capacity in case of retail and wholesale distribution must not be less than 20 KL and 100 KL, respectively.

A committee under the district magistrate will be responsible for physical verification of biodiesel supplied to consumers other than oil companies. Public sector oil companies’ mobile labs will have the mandate to carry out quality check of biodiesel and the government will have the right to cancel registration of the agency concerned, if its biodiesel is found to be spurious.