Government restricts bio-fuel imports

NEW DELHI: The government has restricted the import of bio-fuels including ethyl alcohol, bio-diesel and petroleum oils for all purposes and their import will require import licence from the Directorate General of Foreign Trade (DGFT).

Till now, import was allowed only for non-fuel purposes subject to actual user condition.

The restriction will affect the import of ethyl alcohol and other spirits, denatured, of any strength, petroleum oils and oils obtained from bituminous minerals (other than crude, through an amendment in import policy) and bio-diesel.


“Policy condition providing for free import of bio-fuels by actual users is deleted. Import policy of bio-fuels is “restricted” for all purposes and its import will require import licence from DGFT,” the government said in a notification.

It had in August last year, amended the import policy to restrict the free import of biofuels. They were allowed only for non-fuel purposes.

In May last 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, in a move to reduce oil imports.