In April, 2003, a Committee set up by Planning Commission recommended :- Setting up of a National Mission on Bio-diesel and Implementing the programme in two phases, a demonstration phase followed by a self-sustaining programme. Aim was production of bio-diesel to achieve a target of 20% blending with petroleum-diesel.

  The MoRD was identified by Prime Minister to be the nodal Ministry.
  The Planning Commission accorded  “in principle” approval  on 23.12.2005 for both activities.
  The EFC  approved with modifications on 9th October, 06.
   On  8.3.2007, the Cabinet referred the matter to a GoM.
   The recommendations of GoM placed before the Cabinet on 11.9.2008  Matter referred back to GoM.
  GoM gave “in principle” approval on 24.2.2009 subject to certain conditions and modifications. MNRE, as service Ministry, to place matter before Cabinet.

The Cabinet in its meeting held on 23.7.2009 gave the following decision ;

(i) The demonstration phase can be taken up only after an assessment is carried out of the plantation work already undertaken in the country and positive feed back received, and availability of budget.

(ii) Research and development work to be  coordinated as proposed under the National Policy on Bio-fuels with allocations for R&D to be made under the budgets of the respective Ministries/Departments and Agencies.

The Policy Coordination Committee, as proposed in the proposal of MoRD, need not be set up in view of the policy coordination mechanisms already proposed in the National Policy on Bio-fuels. In compliance with the decision of the Cabinet, the Deptt. is getting an assessment carried out of the plantation work already undertaken in the country.