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August 31, 2009 | Jim Lane | Comments 0

India’s petroleum ministry cracks down on biodiesel use

In India, a biofuels crusader has filed suit against a circular drawn up by the national ministry of petroleum and natural gas which aims to “ensure the unauthorised sale and possession of bio-diesel in the market is checked and eliminated”.

The circular halted supply of biodiesel to Calcutta Tramways Company (CTC), which had converted to biodiesel in a bid to reduce greenhouse gas emissions by 30 percent. The ban has come despite legislation by the national government exempting biodiesel from state taxation, and despite the establishment of numerous biodiesel companies. India imports 70 percent of its fossil fuels, which is considered a major drain on foreign currency reserves.

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