India's National Policy on Biofuels 2018: What It Covers and What It Does Not

“Biofuel policy” is often quoted in conversations about biomass pellets and briquettes, so it is worth being precise about what the National Policy on Biofuels 2018 actually covers. This article is a policy explainer for industrial buyers. It reflects the position as of October 2026; confirm details with the issuing authority.

What the Policy Covers

The National Policy on Biofuels, approved by the Union Cabinet in 2018 (Press Information Bureau release of 16 May 2018), classifies biofuels into two groups. “Basic biofuels” are first-generation (1G) bioethanol and biodiesel. “Advanced biofuels” include second-generation (2G) ethanol, municipal solid waste to drop-in fuels, third-generation (3G) biofuels and bio-CNG. The policy is mainly concerned with liquid and gaseous transport fuels, ethanol blending in petrol and biodiesel blending in diesel. It was amended in 2022, including advancing the ethanol blending target of 20% to ethanol supply year 2025-26.

What the Policy Does Not Do

The policy does not define solid biomass pellets or briquettes as a second-generation biofuel, and it does not set a classification, certification or compliance status for industrial solid fuel. Statements that a particular pellet or briquette is “classified as a biofuel under the National Biofuel Policy” or “complies with” it are not supported by the policy text. We do not make them about our products.

Which Rules Do Matter for Solid Biomass Fuel Buyers

BIS standards exist for solid biofuel briquettes and pellets, but BBI does not claim BIS certification. Our specification is confirmed by the batch lab report, available on request.

Practical Takeaway

For a boiler or furnace operator, the useful questions are practical. What is the GCV, moisture and ash of the delivered lot? What does it cost per million Kcal? What permits apply to your unit? Policy language about liquid biofuels will not answer those questions, and it should not stand in for a lab report.

Frequently Asked Questions

Are biomass pellets a biofuel?

In everyday language, biomass pellets are a solid fuel made from agricultural or wood residue. The National Policy on Biofuels does not define them as an advanced biofuel, and we do not claim they are classified or approved under it.

Do pellets and briquettes need a government certificate to be sold?

BIS standards exist, and BIS marking is voluntary. MNRE does not certify fuel sellers. Ask any supplier for a batch lab report.

Why the Confusion Happens

The word biofuel is used loosely in sales conversations. A supplier may say their pellets are a biofuel, which is true in the plain sense that they come from biomass, and a buyer may then assume a government policy backs the product. Those are two separate things. Plain-language description of a fuel is not the same as classification under a specific policy, and procurement teams should keep the two apart in writing.

Reading the Policy Like a Buyer

When a policy document is quoted to you, ask four things. Which fuels does the text actually name? Who carries the obligation? Does it create a benefit for fuel buyers, for fuel makers, or for neither? And is the statement dated? The National Policy on Biofuels is concerned with ethanol, biodiesel and advanced biofuels for blending and transport. It gives industrial boiler operators no entitlement, no fuel grade and no purchase obligation.

Policies that sit closer to solid fuel

• Co-firing rules: the obligation is on thermal power plants under the Ministry of Power policy. Pellets can be offered to power plants against their own fuel specification. See our co-firing policy explainer.
• Manufacturing support: the MNRE National Bioenergy Programme offers financial assistance to makers of briquettes and pellets, not to fuel buyers.
• Tax treatment: confirm the current rate on the CBIC schedule, as discussed in GST on biomass pellets.

Claims a Careful Buyer Should Challenge

1. Any statement that a pellet is approved or certified by a ministry. Ask for the document and read what it actually certifies.
2. Any statement that buying fuel earns credits. Credits come from registered projects or obligated entities, not from a purchase.
3. Any statement that the fuel satisfies a regulation that applies to someone else, such as a power plant obligation.
4. A quality grade without a batch report behind it.

What to Request in Writing

Replace policy language with evidence you can file. Ask for the batch lab report, the stated GCV basis, moisture and ash figures, and the feedstock. Ask which standard, if any, the specification refers to. A BIS standard for pellets and briquettes exists, but marking is voluntary, so its absence is not itself a defect. Our overview of pellet quality standards in India lists what to check.

Local Rules Still Apply to Your Plant

Whatever happens at the national policy level, your boiler runs under the conditions of your own state pollution control board. Stack testing and consent terms decide whether your emissions are acceptable, not the label on the fuel. Before switching, check your consent conditions and talk to your environment officer about the fuel change.

Keeping Policy Out of the Cost Comparison

The business case for a solid fuel rests on delivered cost per unit of heat, handling, ash and reliability. Test it with a trial of the 25 MT minimum order and measure steam output against fuel consumed on your own equipment. Policy changes, and your own measured data will still be valid after it does. Date every policy statement you rely on, and recheck it with the issuing authority before you commit to a long contract.