Bihar government Introduced Biofuels Production Promotion (Amendment) Policy 2025

Biofuels Production Promotion (Amendment) Policy 2025: The Bihar government has introduced the Biofuels Production Promotion (Amendment) Policy, 2025, updating its earlier 2023 rules. The goal is to bring in more private companies to make biofuels like ethanol and compressed biogas in the state.

Under the new policy, private firms and oil marketing companies can lease up to 25% of industrial land from BIADA to set up CBG plants, with leases available for 30 years at Rs. 75,000 per acre per year. 

Why Is This Policy Important?

This new policy is important because it helps Bihar move faster towards using more renewable energy. It also helps farmers earn more money and creates new jobs by using things like leftover crops, animal waste, and other waste materials to make biofuels.

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What Was the Earlier Policy?

Earlier, Bihar had the Biofuels Production Promotion Policy, 2023, which was a revised version of the Ethanol Production Promotion Policy, 2021. This new policy added support not just for ethanol but also for Compressed Bio Gas or bio CNG plants. The main aim was to increase biofuel production using approved raw materials. It also focused on helping farmers earn more and reducing pollution to protect the environment.

Main Objectives of the 2025 Amendment Policy

The main objectives of the Bihar Biofuels Production Promotion (Amendment) Policy, 2025 are focused on increasing clean energy and improving the rural economy. Here are the main objectives of the Bihar Biofuels Production Promotion (Amendment) Policy, 2025: 

1. Increase bioenergy production in Bihar: The policy aims to boost the production of clean fuels like ethanol and compressed biogas (CBG), which are made from natural waste materials. This will reduce pollution and help the environment.

2. Encourage private companies: The government wants more private companies to come forward and set up biofuel plants in Bihar. For this, they are offering easier land leasing and longer deadlines.

3. Support farmers: Farmers will benefit as their leftover crops, animal waste, and other organic materials can be sold to make biofuels. This gives them extra income and reduces waste.

4. Create jobs: As more biofuel plants are built, new employment opportunities will be created in both rural and urban areas, especially in the energy and farming sectors.

5. Promote renewable energy in Bihar: The policy supports the state’s goal of using more renewable and eco-friendly energy sources, making Bihar a cleaner and greener state in the long run.

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What Does the Policy Cover?

The policy focuses on two main types of biofuel plants. First, it includes new factories that make only fuel-grade ethanol using one or two types of raw materials. Second, it supports plants that produce Compressed Bio-Gas (CBG) or bio-CNG. These plants turn natural waste into clean fuel, which is better for the environment.

Key Changes in the Policy

Under the new Bihar Biofuels Production Promotion (Amendment) Policy, 2025, several important changes have been made to support Compressed Bio-Gas (CBG) units:

1. More land for lease: Now, private companies can lease up to 25% of the land available with BIADA (Bihar Industrial Area Development Authority) to set up CBG plants. This gives companies more space to build and operate their projects.

2. Longer lease period:  The land can now be leased for 30 years, and the rent is fixed at Rs. 75,000 per acre per year. This long-term lease provides stability and encourages companies to invest.

3. Extended deadlines: Companies now have more time to get the required government clearances and financial approvals for their projects. This reduces pressure and allows better planning.

4. First come first served benefits: The policy offers special incentives, but only to those companies who apply early and before the set deadlines. So, timely application is important to get the full benefits.

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How Will This Policy Help Bihar?

The Bihar Biofuels Production Promotion (Amendment) Policy, 2025 will help the state in many ways:

1. More Investment: This policy will attract private companies to set up biofuel plants in Bihar. With easier land lease rules and clear deadlines, more businesses will be interested in investing in this sector.

2. More Jobs: As new biofuel factories open, many people will get employment, especially in rural areas. Jobs will be available in setting up, running, and managing these plants.

3. Cleaner Environment: Biofuels like ethanol and compressed bio-gas are made from natural waste. Their use will reduce the need for polluting fuels like petrol and diesel, leading to cleaner air and less harm to nature.

4. Farmer Benefits: Farmers can earn extra income by selling crop waste, animal dung, and other farm leftovers to these plants. Instead of throwing away this waste, it will now be used to make fuel.