India wants to join hands with EU for biofuels

06 July 2007

Brussels: Following the growing gap between oil demand and supply, India is looking to working with the European Union on developing biofuels as an alternate to curb the growing use of hydrocarbons.

Vilas Muttemwar, minister of new and renewable energy, said, "India has been among the world leaders in the deployment of new and renewable energy. Over these years, the contribution of renewable energy has increased significantly in our country, meeting about 15 per cent of the electricity needs," he told delegates at the International Conference on Biofuels hosted by the European Commission in Brussels last night.

"Incidentally, 100 per cent foreign direct investment (FDI) in new and renewable energy is allowed under the automatic route in India," the minister stated.

The biofuels programme in India is to be developed in public-private partnerships, which would promote biofuel plantations on government, community and private lands, the minister declared.

"We look forward to working with the European Union and all participating countries for achieving our biofuel aims and targets," he said.

EU trade commissioner Peter Mandelson responded saying that the EU''s biofuel policy should be determined by global environmental concerns — prioritising the greenest biofuels whether produced within the EU or imported.