India Imposes Restrictions on Export and Import of Biofuels

A license will be required for both export and import of biofuels

August 31, 2018

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The Government of India has imposed restrictions on the export and import of biofuels. Recently, government issued two separate restricting orders pertaining to the import and export of biofuels in India.

Biofuels include ethyl alcohol and other spirits, petroleum oil and oils obtained from bituminous minerals, biodiesel and mixtures.  Earlier, the export and import of these items was allowed without any restrictions. Now, a license will be required for both export and import of biofuels.

“Export policy of biofuels is revised from free to restricted as per the national policy on biofuels 2018,” the Directorate General of Foreign Trade (DGFT) said in a notification. In its second notification issued on August 21, 2018, the DGFT also stated, “Import policy of biofuels is revised from free to restricted as per the national policy on biofuels 2018.”

In another notification, DGFT, which falls under the ambit of commerce ministry, said that it has now permitted the import of petroleum bitumen and other residues of petroleum oils or oils obtained from bituminous minerals.

In May 2018, the central government’s cabinet, headed by Prime Minister Narendra Modi approved the National Policy on Biofuels – 2018. In a country like India, where the overall economic growth is fueled by its agrarian sector, biofuels assume great significance in light of the country’s ambitious goals of doubling farmers’ income, import reduction, employment generation, and waste-to-wealth creation.

Meanwhile, India tested its first biofuel-based flight after it successfully completed its journey from Dehradun to Delhi. India-based flight operator SpiceJet operated the test flight powered by biojet fuel, marking a new chapter in the fast-growing domestic aviation sector.

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