What is in news?
- The Ministry of Petroleum and Natural Gas assured the bio diesel industry that the government is keen to promote green energy and it will intervene with the GST Council to ensure that the rates on bio diesel and other green energy products are reduced.
- The assurance from the government came here at Bio-energy Urja Utsava by oil minister Dharmendra Pradhan.
- He assured the industry that the government would make all efforts to ensure reduction of high GST rates on green fuels.
What is is the need to reduce GST rate?
- Under the GST rates announced recently, bio diesel, ethanol and other mixing products would be charged at 18%.
- For the last 10 years, bio diesel attracted zero excise duty.
- The green fuel — bio diesel — is required by the government which wants to cut its crude import by 10% and more so with an environment friendly fuel.
- However, the high incidence of tax on bio diesel will make it costlier than diesel and ultimately make it uncompetitive
- Higher GST rate on bio diesel contradicts the government’s efforts to push this clean and green fuel.
India needs promotional policy and initially no tax for green fuel bio diesel. Promoting green fuel bio diesel would go long way in curbing vehicular emission and to protect the environment. Any tax on bio diesel will discourage the users and kill this sunrise industry.
Bio energy Urjaa Utsav:
- The ministry of petroleum and natural gas is organizing a two day – “Bio energy Urjaa Utsav” in Pune on 7th and 8th July 2017 with 6-7 other ministries also participating in it.
- The Utsav is aimed at bringing into focus various initiatives in the country in Bio Energy Sector and towards developing an inclusive National Policy frame work and sustainable mainstreaming of such technologies.
- This Utsav will also help to create awareness amongst the students/farmers/citizens about the Bio Energy.
- The two day event as named will be held in a “Mela” format.
- There will be multiple activities happening in parallel at the venue like.
- Exhibition for showcasing of various indigenous and foreign technological innovations and initiatives in the bio energy sector, technical sessions, workshops for students farmers, NGOs, video shows, technical tours and information kiosks.
- To show case several bio energy initiatives in the country and start a journey towards main streaming bio energy in india is the objective of the event. NYCS is a proud partner of the event.
- Bio diesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl (methyl, ethyl, or propyl) esters.
- Bio diesel is typically made by chemically reacting lipids (e.g., vegetable oil, soybean oil,animal fat
- Bio diesel is meant to be used in standard diesel engines and is thus distinct from the vegetable and waste oils used to fuel converted diesel engines.
- Bio diesel can be used alone, or blended with petro diesel in any proportions
Bio diesel blends can also be used as heating oil.
The National Bio diesel Board (USA) also has a technical definition of “bio diesel” as a mono-alkyl ester.