The Planning Commission approval has made available Rs 50 crore (around $A15 million) for the Mission to begin development of 60,000 hectares of land in preparation for the commercial growth of non-edible Jatropha plants for use as a feedstock.

Of the land designated for the development project, 40,000ha is considered wasteland, with all development supervised by the Indian rural development ministry.

The total projected cost of India’s biodiesel mission is worth more than $A450 million.

The Indian Government intends to phase in the introduction of biodiesel with an initial mandated 5% blend.

Buses in Mumbai city and Rewari in Haryana have begun biodiesel trials, while 30% of Karnataka State Road Transport Corporation buses are already using biodiesel.

Indian petroleum minister Mani Shankar Aiyar has said that oil companies operating in the country were supporting the establishment of an Indian biofuels industry, agreeing to purchase the biodiesel for blending.

The minister also said oil companies had signed a memorandum of understanding with the Indian Sugar Mills Association for ethanol.