Biofuel Growth in India: Policy Support and Investment Landscape
                     Biofuel Growth in 
India: Policy Support 
and Investment 
Landscape
www.advancebiofuel.in
Government 
Policy Framework
The government has boosted biofuel production through 
enhanced national programs. The National Bio-Energy 
Mission provides financial and regulatory support for biofuel 
projects. The Ethanol Blended Petrol (EBP) program targets 
20% ethanol blending by 2025, with incentives for 
producers and streamlined compliance. Biodiesel and 
advanced biofuels like 2G ethanol are also prioritized with 
subsidies and funding. 
Financial Incentives & 
Subsidies
To attract investment, India offers capital 
subsidies covering up to 30% of project costs for 
biofuel plants, low-interest loans, and tax 
benefits such as GST exemptions on raw 
materials and equipment. These incentives 
reduce entry barriers for both domestic and 
international investors, enhancing project 
viability and growth potential. 
Market Opportunities
Biofuel demand is driven by mandatory blending 
targets and expanding production capacity. 
Ethanol blending has surged toward the 20% 
goal, supported by diverse feedstocks and 
infrastructure planning. Advanced biofuels and 
compressed bio-gas (CBG) present additional 
growth avenues, while state-level initiatives 
further encourage investment and technology 
adoption. 
Investment Landscape & 
Future Outlook
• The future of biofuel in India is strongly supported by 
clear government policies, blending mandates, and 
long-term sustainability goals. With rising demand for 
ethanol, biodiesel, and advanced biofuels, investors 
benefit from predictable market growth and reduced 
• rCisokn.tinued policy support, infrastructure development, 
and private sector participation position biofuel in 
India as a key driver of the country’s clean energy 
transition and energy security.
Thank
You
www.advancebiofuel.in