Bio-diesel to be sold directly to consumers, now on
Centre is on a reform-spree and this time it has cut the "red tape" related to the sale of Bio- diesels in the country.
From now on, private manufacturers of bio-diesel can sell their product directly to consumers - public and private, big and small.
- Earlier Even the bulk-user 'Indian Railway' was so far barred from directly purchasing such fuels as the law limit that right exclusively to state-owned oil firms.
- As for the private sector, only those firms investing Rs 2000 crore in oil infrastructure were allowed to sell petrol and diesel (including bio-fuel).
- In coming days, the Rs 2000 crore investment barrier will also be relaxed to allow more private consumers to avail this benefit.
Reason behind the move
- Price of diesel is already deregulated and determined by the market, and it made no sense in restricting private manufacturers in deciding who to sell to.
- The move is expected to boost the production and use of bio-diesel in the country.
- Bio-diesel is combination of bio-fuels and diesel and is used to power several automobiles.
- The quality of all the fuels have to be in line with the standard set by Bureau of Indian Standards (BIS).
- The maximum percentage allowed for bio-fuel to be mixed with 'High Speed Diesel' will continue to be five percent of the mixture.
- The laws to be amended are: Motor Spirit (MS) and High Speed Diesel (HSD) control order for regulation of Supply, Distribution and Prevention of Malpractices.
- The amendment to this 2005 law will allow private biodiesel manufacturers, their authorised dealers and Joint Ventures of Oil Marketing Companies (OMCs) authorized by the Ministry of Petroleum & Natural Gas (MoPNG) as dealers and give marketing/ distribution functions to them for the limited purpose of supply of bio-diesel to consumers.
- Now, heavy consumers of diesel like Indian Railway can easily and directly buy bio-diesel