Released on = May 7, 2007, 4:50 am

Press Release Author = Shushmul Maheshwari

Industry = Energy

Press Release Summary = India launched a countrywide 5% EBP (Ethanol Blended Petrol)
Program at Hyderabad in April 2007, which aims to improve energy security in the
country.

Press Release Body = Karanj and Jatropha are the two plants India is emphasizing on
for promoting alternative energy sources, as the country launches a nationwide
biofuel mission.

A committee of experts was set up by the Federal Planning Commission, which will
study and suggest measures for the promotion of biofuels’ development. In a recent
report submitted by the committee before the commission, the committee has
recommended the government to launch a countrywide biofuels mission focusing on
encouraging the cultivation of Karanj and Jatropha.

Chandra Shekar Sahu, Jr. minister for rural development said, “The national mission
would shortly be launched in two phases”. United Press International (UPI) published
this statement on April 11, 2007. \'Under the first phase that would be a
demonstration phase, Jatropha and Karanj plantation would be undertaken in (400,000)
hectares of government-owned land”, he added.

In the 2nd phase of the mission, Jatropha will be cultivated in 11.2 million
hectares of govt. as well as private land for increasing biodiesel’s production,
according to the minister. He went on to say that the objective of the mission is to
attain the goal of 20% blending of biofuels with diesel and gasoline.

There’s a requirement of 2.6 million tons biodiesel in India in order to achieve its
goal of 5% blending with fossil fuels. A number of private players in Maharashtra
and Tamil Nadu have already commenced the plantation of Jatropha under a ‘contract
farming’ system.

RNCOS report on “Indian Biofuel Industry” notifies, “Biofuels market in India is
largely based on Ethanol - derived from the molasses of sugarcane – and biodiesel
that’s obtained through non edible oil seeds for example pongamia and Jatropha. The
primary objectives of the govt. for encouraging biofuels industry include
environmental factors, plus security and diversity of energy supply. This is also
working as the key driver for the growth of biofuel industry in India.”

The report is a must read for analysts, businesses, investors and individuals
monitoring the developments in the biofuel industry in India. Issues addressed by
this report include: market forces driving the industry and challenges faced by it,
government policies in India favoring Biofuels industry, contribution of sugar
industry in ethanol production in India, and so on.

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM500.htm
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