Explanation:

First option is correct.

Rajasthan has become the first state of the country to launch the National Biofuel Policy 2018.

• The new policy explores a wider variety of raw materials to be used as inputs to produce ethanol (which is to be blended with petrol).
•  Apart from sugarcane – government plans to include corn, damaged food grains, potato and even municipal solid waste as ethanol sources.
•  These changes are likely to reduce the cost of producing bio-fuels and improve affordability for consumers, particularly during oil price hikes.
•  The Centre hopes the new policy will also benefit farmers, who will be able to sell various types of agricultural waste to industry at remunerative prices.
•   It will also serve as an incentive for farmers to not burn their stubble and other farmland waste, which has become a menace in the regions around Delhi.
•   The policy also envisions a budget of 5,000 crores for supply chain infrastructure enhancement in the bio-fuel sector.