Released on = May 15, 2007, 3:23 am

Press Release Author = Shushmul Maheshwari

Industry = Energy

Press Release Summary = India, till now, doesn’t have a well-developed Biofuel
industry. But the government has now realized the need of the hour and is framing
policies to rev up the green fuel production from sugarcane.

Press Release Body = According to a recent report on “Indian Biofuel
Industry” published by RNCOS, environmental safety, together with security and
diversity of energy supply, are the principal aims of the Indian Government for the
Biofuel industry. These factors are working as the main impetus for the growth of
the Biofuel industry.

The Indian government has recently instituted its policies to promote the production
and usage of Biofuel, with the effort directed on encouraging the ethanol blending
with gasoline, and blending of Biofuel extracted from non-edible oils with diesel.

As per recent news, India, the second largest sugar producer in the world, may give
permit to sugar mills to make use of low-grade sugar to produce ethanol to
compensate for the price fall in the midst of record yield. “We’re
seriously thinking of allowing the use of secondary sugar for ethanol
manufacturing,’’ said Sharad Pawar, Agriculture Minister, in New Delhi,
as reported by THE FINANCIAL EXPRESS on May 1, 2007. The Foreign Agricultural
Service at the US Embassy in New Delhi predicted in a report dated April 20, 2007
that sugar production in India might touch the mark of 27.43 Million Tons in 2007.
Production may further increase to around 28.8 Million Tons by September 2008.

Presently, the government policies allow sugar mills to prepare Biofuel from
molasses (and not sugar) to ensure sufficient sugar supplies. The Centre, in May
2006, passed a law stating the blending of 5% ethanol in gasoline from November
2006.

Sugar mills, interested in establishing ethanol production facilities (using
sugarcane and molasses), are being given subsidized loans of upto 40% of the project
cost from the government controlled Sugar Development Fund.

The need to cut India’s reliance on crude oil imports, provide
environment-friendly alternative sources of fuel, and to support the Indian farmers
by developing methods to keep sugarcane production high is driving the Biofuel
policies.

According to the RNCOS report “Indian Biofuel Industry”, a large
proportion of arable area in India is under sugarcane production. The annual
production of sugarcane for the year 2006 was about 266.89 Million Tons. However,
the praxis of producing ethanol directly from sugarcane hasn’t picked up in
the country till yet, indicating huge opportunity for the development of production
of ethanol.

The market research report presents a detailed picture of the Indian Biofuel
industry with the foci on Indian Biofuel policy, demand & supply statistics, driving
forces, opportunities, challenges, jatropha cultivation scenario, government
initiatives, and future of the industry.

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM500.htm
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Web Site = http://www.rncos.com

Contact Details = RNCOS E-Services Pvt Ltd.
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com