Although 2G (Second Generation) Ethanol can play a very important role in economy, employment and environment protection yet, despite of several positives, India faces numerous challenges."Critically discuss while suggesting policy actions to provide positive momentum to second generation ethanol Industry in the country.

The world has been witnessing climate change at a very alarming level.Fossil fuel is the biggest contributor to climate change due to release of carbon dioxide which is a potent green house gas.There is an international consensus to find an alternative source of energy which is witnessed in Paris summit and adoption of sustainable development goal
                  In this backdrop ,second generation biofuel appear to be promising one because of its advantages like
1.)clean energy because of its non polluting characteristic which make it environment friendly.
2.)Reduce dependency on Fossil fuel and will lead to energy diversification and ultimately paved the way for energy security.
3.)biofuel like jathropa and bioethanol can be cultivated even in wasteland and hence wasteland could be utilised
4.)Will create job opportunities because this industry employ unskilled labour and it’s presence in village can lead to rural development and make use of demographic dividend of India.
However there are various challenges that Act as a blockade in realising its true potential
1.)Biofuel requires food crops as a feedstock which will lead to diversion of food crop for producing biofuel .According to global hunger index India has large no of population living below poverty line who remain starved.
2.)lack of physical infrastructure and technology such as pre-treatment plant and refining centre.
3.)scarce land and water resources Act as a stumbling block
4.)lack of awareness among small and marginal farmer about the significance of biofuel.
However government has been taking steps to address this challenge.National policy on biofuel is a step in right direction which require blending of bioethanol with petrol.Various policy actions can help this infant industries to emerge as a potential industries like
1.)MSP(minimum support price) on biofuel crop to incentivise farmer .
2.)Need for investment in state of art technology and physical infrastructure.PPP model can be explored for this.

Published: December 24, 2016 | Modified:June 22, 2019