Two main types of biofuels are envisaged: alcohol from plant wastes, chiefly sugarcane molasses, and biodiesel — oil produced from non-edible oilseed crops such as jatropha curcas, which can be blended with diesel.
The policy supports increasing biodiesel plantations on community, government-owned and forest wastelands, but not on fertile, irrigated lands. The government estimates 13.4 million hectares of barren land are available for jatropha cultivation, which could potentially yield 15 million tonnes of oil each year.
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