NEW DELHI: In a bid to increase the availability of green fuel, the government today allowed private biodiesel manufacturers to sell directly to Indian Railways and other consumers.

So far, only state-owned oil companies and private companies that have invested Rs 2 billion in oil infrastructure can use biodiesel. Retail sale of gasoline and diesel is allowed. The rule also applies to biodiesel that is blended with diesel before lighting a car.

The Union Cabinet chaired by Prime Minister Narendra Modi today approved the amendments to the Motor Vehicles Act, December 19, 2005, relating to supply, distribution and prevention of negligence in respect of control orders for alcohol (petrol) and high speed diesel (diesel).” Here is the official statement:

The amendment allows private biofuel diesel manufacturers, authorized dealers, and Ministry of Petroleum and Natural Gas (MoPNG) approved Oil Marketing Company (OMC) joint ventures to act as dealers and provide marketing/distribution functions. “We provide biodiesel to consumers,” he said.

Further, through MoPNG, the new provision of biodiesel marketing rights to private biodiesel manufacturers, authorized dealers and consumers will mitigate an investment of Rs 200 crore.” OMC Joint Venture for Sales said. ‘.

The change is due to the problems faced by users in purchasing biodiesel. The price of biodiesel is higher than the ex-factory price of diesel, and state-owned companies have financial considerations.

With the relaxation of the policy, mass users such as railroads can buy biodiesel directly from manufacturers and use the paint. “This decision will encourage the domestic production and use of biodiesel,” the Ministry of Defense said in 2006 year 1 monthly announcement. We produce biodiesel in China and blend it with diesel fuel to improve energy security and meet other emissions and environmental goals.

Under this policy, OMC complies with the fuel quality standards laid down by the Bureau of Indian Standards (BIS) for blending of biodiesel with not more than 5% HSD at a uniform price determined by OMC from time to time with purchases from designated procurement centers.

“Since the price of diesel has been relaxed and is determined by the market, there is no economic reason to prevent private biodiesel manufacturers, authorized dealers and MoPNG-authorized OMC joint ventures from selling biodiesel directly to consumers. However, these products must comply with BIS requirements. Regulatory Standards. ” Published Statement.