UP puts its decision to sell bio-diesel directly to consumers on hold - Hindustan Times
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UP puts its decision to sell bio-diesel directly to consumers on hold

Dec 02, 2021 12:42 AM IST

The decision was taken after the state government officials sensed that the Central government may ban retail sale of biodiesel by manufacturers directly to consumers very soon.

Uttar Pradesh has put on hold its two-week old decision that sought to permit direct sale of biodegradable fuel in the state after obtaining a licence for the same. The decision was taken after the state government officials sensed that the Central government may ban retail sale of biodiesel by manufacturers directly to consumers very soon.

Biofuel (Pic For Representation)
Biofuel (Pic For Representation)

The decision that was taken in mid-November after a high-level meeting chaired by chief secretary Rajenda Kumar Tiwari on October 2, however, did not come in the public domain and was made inoperative.

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“We have decided to wait and watch the Centre’s next move on the biodiesel before we go ahead with our decision,” a government official dealing with the issue said adding “We have been told that the Centre might soon issue an order banning the direct sale of biodiesel to transporters and other consumers.”

The UP government on November 15 issued a circular putting in place a regulatory mechanism for issuing licence for production, storage and direct sale of bio-diesel in the state.

As per the circular issued by the department of food and civil supplies following the chief secretary’s directives, the department of alternative energy resources was entrusted with the task of issuing permission/licence for the production/storage and sale of bio-diesel in the state.

The department of food and civil supplies, as per the same circular, was made responsible to act against producers/sellers who were found blending biodiesel into diesel above the fixed proportion or found selling adulterated bio-diesel.

Director UPNEDA and special secretary, alternative energy resources, Bhawani Singh Khangaraut said that the action on the circular issued by the department of food and civil supplies had been suspended because it lacked clarity. “We, on November 30, wrote a letter to them, seeking clarification or some points before our department can start giving licences for retail sale of bio-diesel in the state,” he said.

“As of now, no additional permission or licence is required to be obtained for production and storage of bio-diesel in UP though no retail sale of biodiesel direct to consumers is permitted in the state,” he clarified.

Prior to the Central government’s notification issued on April 30, 2019, the producers could sell biodiesel only to oil companies as per the formula fixed by the government and they were not allowed to sell it directly to any organization like railways or any other transporter or individual.

“After the Centre’s notification of April 30, 2019 many states permitted direct sale of biodiesel but UP was yet to give any such permission though some people must be selling biodiesel illegally direct to transporters and individuals,” Khangraut said.

People in the know of things said that the Centre was considering banning the retail sale of biodiesel in the country due to increasing number of complaints about unscrupulous elements selling adulterated biodiesel harming automobile’s engines on the one hand and causing revenue loss to the government exchequer.

Only recently the Punjab Petroleum Dealers Association urged the Punjab government to act against the sellers of ‘fake’ biodiesel in the state. The association complained that a lot of low-grade oil was being sold in the market as ‘bio-diesel’ adversely affecting traders, government exchequer as well as vehicles’ engines.

“Reports of sale of biodiesel missed with palmolive and other substances damaging hundreds of automobile engines also were received from Tamil Nadu recently,” an official here said suggesting that UP must be cautious while allowing retail sale of the biodiesel in the state.

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  • ABOUT THE AUTHOR
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    Brajendra K Parashar is a Special Correspondent presently looking after agriculture, energy, transport, panchayati raj, commercial tax, Rashtriya Lok Dal, state election commission, IAS/PCS Associations, Vidhan Parishad among other beats.

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