In a significant move to promote renewable energy, the Karnataka State Bioenergy Development Board (KSBD Board) has announced plans to set up biodiesel pumps at the taluk level in collaboration with private companies. The initiative aims to make biodiesel — a cleaner, cheaper, and eco-friendly alternative to traditional diesel — more accessible to consumers across the state. While private firms will operate these pumps, the board will assist them in obtaining necessary government permissions and in marketing the fuel effectively.

Karnataka Eases Rules to Boost Biodiesel Pump Setups

Biodiesel is derived from used cooking oil, oilseeds, and other agricultural by-products, offering a sustainable solution to fossil fuel dependency. Despite growing interest, around 70 applications from companies seeking to establish biodiesel pumps had been stuck in bureaucratic limbo due to the lack of clear regulatory procedures. However, this bottleneck was cleared after the state government issued the “Karnataka State Biodiesel (B-100) Blending with High-Speed Diesel for Transportation Purposes (Licensing) Order, 2025.” This order officially allows private players to set up biodiesel stations and market the product directly to the public.

According to S. E. Sudheendra, Chairman of the KSBD Board, the notification has resolved earlier procedural hurdles, encouraging more companies to join the green energy drive. He added that biodiesel will cost at least ₹5 per litre less than conventional diesel, and prices may drop further as production and supply expand.

Ensuring Safe Biodiesel Use and Breaking the Oil Company Monopoly

Addressing public concerns over potential engine damage and mileage issues, Bharath Subramaniam, Advisor to the Chairman, clarified that only B100-grade biodiesel — tested and approved internationally for automobile use. It will be sold at these pumps, ensuring safety and performance.

Industry experts also highlighted that much of Karnataka’s biodiesel stock is currently sold to large oil companies for blending with normal diesel. These companies do not transfer the cost benefits to consumers, creating a need for direct consumer sales to break this monopoly. Biodiesel’s advantages include lower emissions, reduced pollution, and decreased reliance on oil imports. Karnataka, a pioneer in bioenergy, first implemented its Bioenergy Policy in 2007-08, which later inspired the Union Government’s National Bioenergy Policy of 2017.

Summary:

Karnataka is set to establish biodiesel pumps at the taluk level through private partnerships to promote clean energy. The new 2025 licensing order streamlines approvals, allowing direct biodiesel sales. B100-grade biodiesel ensures engine safety, cuts costs by ₹5 per litre, reduces pollution, and strengthens India’s renewable energy and import-reduction goals.

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