The Union Cabinet has cleared the National Biofuel Policy, and set an indicative 2017 target to blend 20 per cent sugarcane-extracted ethanol with petrol, and non-edible oil with diesel. In the absence of a clear road map ahead, the National Biofuel Coordination Committee headed by the Prime Minister faces an uphill task. Without a mandate and plan of action, commercial-scale production of adequate volumes of biofuel will remain years away. While mixing of ethanol with pet rol has been initiated, biodiesel production has not taken off. The country now has a biodiesel processing capacity of 1.2 million tonnes. Substantial investments are needed for building capacity to meet the ambitious 20 per cent target. More important, the government needs to spell out a viable pricing mechanism, with a possible subsidy component, for biodiesel to motivate producers. India