Gurgaon: Agriculture minister Sharad Pawar has said that the government was in favour of bringing biodiesel and bioethanol under the ambit of 'declared goods', in order to help in the unrestricted movement of biofuels within and outside the states.

Inaugurating the first Biofuels India Summit organised at Gurgaon jointly by the Confederation of Indian Industry (CII) and the ministry of new and renewable energy (MNRE), Pawar said the National Policy on Biofuels envisaged ambitious targets, which would certainly boost biofuels as an alternative energy source, and would thereby facilitate greater investment in the sector.

The summit aims to explore global opportunities in first and second generation biofuels in India, bringing together global perspectives from senior functionaries of ministerial experts, leading national-international biofuels manufacturers and service providers, financial institutions, premier academic and research and development (R&D) institutions, multi-lateral agencies and other expert professionals on biofuels business.

Comanche Clean Energy chairman Tom Cauchois is also presenting "Vision and Perspective of the Biofuel sector from Brazil" at the Biofuels India 2008 Summit. Other presenters at the function include Philip G New, president of global biofuels at British Petroleum; Vilas Muttemwar, minister of state of for new and renewable energy; Dr Gautam Bhandari, executive director of Morgan Stanley Bank, USA; and S Sriram, head of biofuels for Tata Chemicals.

In his keynote address, minister of state for new and renewable energy Vilas Muttemwar expressed the hope the national policy on biofuels, which is awaiting Cabinet approval, would provide a roadmap for the Indian industry and the public sector to tap the full potential of this critical sector.

Muttemwar said that promotion of biofuels would go a long way in meeting the country's energy security needs and sustain the momentum of economic growth.

Both agriculture minister Pawar and renewable energy minister Muttemwar stressed that India's approach to biofuels is based solely on non-food feedstock, which are to be raised on degraded or wastelands that are not suited for agriculture. This ensures avoiding the possible conflict of fuel versus food security.

Pramod Chaudhuri, chairman, CII national committee on biofuels, and chairman of Praj Industries Ltd said the development of the biofuels sector requires a highly efficient and integrated supply chain, backed up by a similarly concerted and integrated policy framework cutting across national and state boundaries.

Chaudhuri mooted a nine-point agenda on behalf of the CII, and hoped that it would be considered for inclusion in the national biofuels policy.

The agenda includes the introduction of flexing mandating, innovative approach to pricing, classification of biofuels as renewable energy, single window clearance across states, and 'declared goods' status for biofuels.

CII's nine-point agenda also calls for the creation of a second-generation biofuels fund, along with the setting up of four regional bio energy centres to boost research and development (R&D) activities and pilot projects in the sector.

''This,'' Chaudhuri said, ''was specially important in light of the ongoing 'food vs. fuel' debate, which is motivating the development of new technologies to increase yield and reduce dependence on the already scarce resources.''

A CII-Rabobank strategy paper titled 'Sustainable Biofuel Policy for India' was also released by agriculture minister Pawar during the first day of the conference. The paper outlines a comprehensive agenda for promoting sustainable development of the biofuels sector in the country with a view to enhancing energy security.

Philip G New, president of global biofuels at British Petroleum set the tone for the summit in his theme address, in which he outlined the need for regulatory certainty and removal of tariff barriers.

Apart from mandatory sustainability standards, New advocated an effective land and water use policy globally, and not just for the biofuel industry, but for all users.

Rajesh Srivastava, chairman and managing director, Rabo Equity Advisors, pointed to the knowledge gap and the lack of understanding amongst investors, especially on the biodiesel front in India. He hoped the strategy paper would provide direction to policy makers.

CII director general C Banerjee said the apex industry body was committed to development of the biofuels sector given its critical importance in terms of energy security, climate change, and inclusive growth.

CII is looking at various need-based projects and interventions on the lines of the 'realistic costing exercise of biodiesel in India' initiated jointly with the ministry of new and renewable energy, Banerjee said.

According to a recent economic assessment of biofuels support policies by the organization for economic cooperation and development, Brazil is the largest exporter of ethanol, with 2006 exports amounting to almost 3.5 billion litres of just under 5 billion litres of ethanol traded globally.

In 2007, Brazil produced 19.2 billion litres of biofuels, while India produced 0.44 billion litres of biofuels.

Comanche Clean Energy chairman Cauchois says, "There is a tremendous opportunity for India to achieve energy independence, and I believe the Brazil can be an integral partner in that pursuit. Comanche Clean Energy is dedicated to development of international partnerships and we believe that India, which is second only to Brazil in terms of sugar production, is a natural and strategic fit."

Established in 2006, Comanche Clean Energy is a vertically-integrated Brazil-based producer of ethanol and biodiesel. Comanche owns and operates the Santa Anita and Canitar ethanol facilities and the Bahia biodiesel facility.

The two-day Biofuels India 2008 Summit has brought together delegates from 10 countries, reflecting the global interest in this sector and the urge for cooperation in exchanging knowledge and experiences.

Participants included policy makers, senior central and state government officials, bankers and venture capitalists, representatives from biofuels, sugar, oil and petroleum sectors, service providers, research and development institutions, and user segments relating to the auto industry.