The Union Cabinet has approved National Policy on Biofuels – 2018 in order to promote biofuels in the country.

• Biofuels in India are of strategic importance as it augers well with ongoing initiatives of Government such as Make in India, Skill Development and Swachh Bharat Abhiyan.
• It also offers great opportunity to integrate with ambitious targets of doubling of import reduction, farmers’ income, employment generation, waste to wealth Creation.
• The policy categorises of biofuels to enable extension of appropriate financial and fiscal incentives under each category - Basic Biofuels: First Generation (1G) bioethanol and biodiesel, Advanced Biofuels: Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio-CNG etc.