Critical Evaluation of Biodiesel Production Initiatives in India
Biofuels are receiving increased attention due to their potential to enhance the energy security of the energy-deficit countries with simultaneous climate change mitigation by reducing GHG emissions. In addition to these, they also offer a pathway for low-carbon inclusive growth for India. Fluctuating imported crude oil prices create a dilemma about the production of biodiesel in India. The objective of the present study is to understand the need for biodiesel production in India while focusing on both forward linkages (such as current status of commercial biodiesel production in India, market linkages and economics of biodiesel production) and backward linkages (such as feedstock availability and their technological implications, policy implications on the economy, supply chain analysis). A critical understanding of the externalities associated with biodiesel production through many government initiatives is also carried out. To be able to make biodiesel production in India a commercial success, we may need to have strong technological base supported by policy support mechanisms. If produced sustainably, biodiesel may offer a comprehensive solution for problems such as energy security, import dependence for energy, rural employment generation and climate change mitigation.
KeywordsBiodiesel Transesterification Forward and backward linkages Climate change GHG emissions
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