Key Messages

Crude oil prices recently crossed US$ 75/bbl, fuelling serious concerns whether India’s rapidly expanding economy can sustain a high and growing level of crude imports There are also serious concerns of global warming from burning of fossil fuels .It may be time for India to explore options which can substitute petrol and diesel and are climate-friendly In a series of two articles, we examine a few such technology and policy options Part I focus on options for substituting petrol by ethanol from sugarcane: molasses, sugarcane juice and cellulose (bagasse) Part II analyses options for diesel substitution: Fischer–Tropsch liquids from coal, and bio-diesel from oil-bearing plants like jatropha.