NEW DELHI: The free import of biofuels will now be allowed only for non-fuel purposes as the Central government, through an amendment in the import policy, has imposed restrictions on biofuel imports.
“Import policy of biofuels revised from ‘free’ to ‘restricted’ and allowed for non-fuel purposes on actual user basis as per the National Biofuel Policy,” a notification from the Directorate General of Foreign Trade (DGFT) read.
The restriction order will include import of ethyl alcohol and other denatured spirits, biodiesel, petroleum oils and oils obtained from bituminous minerals other than crude. The import of these items, which was free earlier, will now be allowed only for non-fuel purposes on an actual user basis.
In May this year, the Cabinet had approved the National Policy on Biofuels, which allows doping of ethanol produced from damaged food grains, rotten potatoes, corn and sugar beet with petrol. The government claimed that the move will cut oil imports by Rs 4,000 crore this year alone.
The government, earlier this month, reiterated it plans to invest Rs 10,000 crore to build 12 biofuel refineries in the next four years, which will help it save Rs 12,000 crore of import bills.
In another notification, the government said that export of beach sand minerals has been brought under state trading enterprise and will be canalised through Indian Rare Earths Limited. Export of rare earth compounds classified as beach sand minerals, permitted anywhere in the export policy, will be regulated.