The policy's goal is to incentivise the production of biofuels. Important steps include encouraging the generation of biofuels from excess crop production and setting apart a viability gap funding to foster the establishment of second generation ethanol refineries (Rs.5000 crore in 6 years). The policy sets an indicative target of 20% ethanol blending in petrol by 2030 and 5% biodiesel blending in diesel by 2030. In 2021, the Government has implemented measures to promote biofuels, including the use of sugarcane, maize, and surplus rice for ethanol production, reduced GST on biofuels, and financial incentives to boost ethanol capacity. Additionally, it has amended regulations to facilitate ethanol movement.