India: Govt allows direct sale of bio-diesel by manufacturers

In a bid to augment supply of environment friendly fuel, the government on Friday allowed private manufacturers of bio-diesel to sell it directly to consumers like Indian Railways.

Till now, only state-owned oil firms and only those private firms investing Rs 2,000 crore in oil infrastructure were allowed to retail petrol and diesel. Bio-diesel, which is to be doped in diesel before being used to fire automobiles, too was clubbed under this rule.

“The Union Cabinet chaired by Prime Minister Narendra Modi today gave its approval for amending the Motor Spirit (petrol) and High Speed Diesel (diesel) control order for Regulation of Supply, Distribution and Prevention of Malpractices dated December 19, 2005,” said an official statement here.»