India exempts biodiesel input materials from central excise tax
October 21, 2015
BY Ron Kotrba
The Government of India amended its tax code Oct. 19 to benefit production of biodiesel.
The Department of Revenue at the Ministry of Finance issued a notice stating it is exempting goods used for production of biodiesel from central excise tax.
The biodiesel inputs that are specifically listed as now exempt from the 12.5 percent central excise tax are refined, bleached and deodorized (RBD) palm stearin, methanol, and sodium methoxide.
Under its Indian subsidiary Universal Biofuels Private Ltd., California-based bioenergy company Aemetis Inc. owns and operates a 50 MMgy biodiesel plant near the port city of Kakinada on the East Coast of India. “With this prohibitive tax barrier to purchasing feedstock and other components removed, we believe Aemetis can, through our Indian subsidiary, achieve full production of biodiesel capacity in 2016,” said Eric McAfee, chairman and CEO of Aemetis. “This supportive tax policy for biodiesel shows the commitment of Prime Minister Modi to cleaner air, lower carbon emissions, increased foreign investment, expanded skilled jobs and decreased diesel imports.” The company added that about 80 percent of the 25 billion gallons a year of petroleum diesel consumed in India is imported.
“With the key tax notification now in place, we believe the entire biodiesel industry in India will benefit,” said Sanjeev Gupta, managing director of Universal Biofuels. “As a market leader in India, Universal Biofuels will move aggressively to source feedstocks from different suppliers in India and across the globe to achieve our revenue and profitability goals.”
Advertisement
Advertisement
The company says it plans to double production capacity at its Universal Biofuels plant to 100 MMgy. The Indian biodiesel industry’s production capacity is estimated today at only 250 MMgy, the company stated.
Advertisement
Advertisement
Related Stories
The U.S. EPA on March 12 announced it has kicked off a formal reconsideration of 2009 Endangerment Finding, which forms the legal basis for GHG regulations, and is considering the elimination of the agency’s Greenhouse Gas Reporting Program.
NATSO, representing America’s truck stops and travel centers, SIGMA: America’s Leading Fuel Marketers, and a variety of other groups are urging Congress to extend the “Section 40A" Biodiesel Blenders' Tax Credit.
The USDA reduced its forecast for 2024-’25 soybean oil use in biofuel production in its latest World Agricultural Supply and Demand Estimates report, released March 11. The outlook for soybean oil price was unchanged.
The U.S. EPA on March 7 announced it will extend the compliance year 2024 Renewable Fuel Standard reporting deadline and signaled its intent to revise the 2024 RFS renewable volume obligation (RVO) for cellulosic biofuel.
The Canada Boarder Services Agency on March 6 announced it is initiating investigations into alleged dumping and subsidizing of renewable diesel from the U.S. The announcement follows complaints filed by Tidewater Renewables Ltd. in 2024.
Upcoming Events
