The Goal of the Policy is to ensure that a minimum level of biofuels become readily available in the market to meet the demand at any given time. An indicative target of 20% blending of biofuels, both for bio-diesel and bio-ethanol, by 2017 is proposed. To achieve this goal: (1) The focus for development of biofuels in India will be to utilize waste and degraded forest and non-forest lands only for cultivation of shrubs and trees bearing non-edible oil seeds for production of bio-diesel. (2) Cultivators, farmers, landless labourers etc. will be encouraged to undertake plantations that provide the feedstock for bio-diesel and bio-ethanol. Corporates will also be enabled to undertake plantations through contract farming by involving farmers, cooperatives and Self Help Groups etc. in consultation with Panchayats, where necessary. Such cultivation / plantation will be supported through a Minimum Support Price for the non-edible oil seeds used to produce bio-diesel. (3) Appropriate financial and fiscal measures will be considered from time to time to support the development and promotion of biofuels and their utilization in different sectors. (4) Research, development and demonstration will be supported to cover all aspects from feedstock production and biofuels processing for various end-use
Source: http://dbtjatropha.gov.in/downloads/biofuel_policy.pdf