For India, energy security is the most serious strategic concern, which affects our economic policies and at the same time drives our diplomatic initiatives. As of this day, the world may be witnessing a comfortable  level of crude oil prices, thanks to global economic meltdown, the long-term scenario building has to be done with crude oil price between USD 60 to 80.This economic consideration, coupled with climate changes concerns is compelling the global community to explore alternate sources of fuel. In Indian context development of Biodiesel As partial substitute of fossil Diesel will help our country in generating the most needed additional rural employment alongside energy security and environment protection.

But developing Biodiesel on commercial scale is easier said than done. The value chain has inbuilt complexities of scarce land usage, organizing large scale logistics for plantation, upkeep and harvesting and harnessing coordination between diverse departments and bodies like NGOs, SHGs, Panchayats, so on and so forth.

In such backdrop, my considered opinion is of nurturing a body like BDAI for bringing awareness, canvassing for policy formation and bringing various stakeholders on a table to develop common strategy for meaningful risk and value sharing arrangements. I take this opportunity to compliment BDAI for performing these roles actively and effectively since its formation.

During the last one year, BDAI has been taking up the cause of Biodiesel with all the stakeholders. Critical issues and policy initiative needs has been highlighted to various ministers. The recent interaction with Cabinet Secretary on 13th November 2008 was also a step in the right direction and positive outcome should be expected from Central government ministries towards development of Biodiesel industry. Since MNRE has been made nodal ministry in this regard, they have been engaged in compilation of authentic statistics for which will provide guidance in policy formulation. The first step has already been taken by bringing out draft National Biofuels Policy that will be released shortly after review by Group of Ministers (GoM). Responsibility of BDAI at this juncture is critical in bringing all pertinent issues to the knowledge of policy makers.

In spite of all these efforts and positive developments, commercial use of Biodiesel is still far away. It is urgently required that policy and fiscal incentives are extended on priority to accelerate feedstock generation. Some of the areas where focused attention of policy makers is required are -