The government is banking on ethanol to meet its target of blending 5 per cent biodiesel in diesel sales by 2030, officials said.
Widely used in Europe, biodiesel refers to biodegradable fuel traditionally manufactured from vegetable oils, animal fats, or recycled restaurant grease.
But its adoption on a large-scale across the country hit multiple hurdles due to the limited availability of biodiesel feedstock.
Despite launching an exercise to tune the existing national biodiesel policy with more incentives, no viable solutions were found, officials told Business Standard.
