NEW DELHI, SEPTEMBER 11 Envisaging a target of 20 per cent blending of bio-diesel and bio-ethanol by year 2017, the Cabinet today approved the National Policy for Bio-fuels. The Cabinet also approved setting up of a National Bio-fuel Coordination Committee under the chairmanship of Prime Minister and a Bio-fuel Steering Committee under the chairmanship of Cabinet secretary for the implementation of the National Policy for Bio-fuels. Apart from the Prime Minister , the bio-fuel coordination committee would also include deputy chairman of Planning Commission and ministers for new and renewable energy, rural development, agriculture, environment and forest, petroleum and natural gas, and science and technology as its members. The decision today came after a Group of Ministers headed by agriculture minister Sharad Pawar finalised its recommendations, which suggested the need for encouraging the bio-diesel plantations in wastelands while keeping the fertile lands of its coverage. The GoM had also suggested that the announcement of MSP for Oil seeds to be utilised for the production of biodiesel by the processing industry. This, the GoM suggested could be augmented by withholding the permission to import the free fatty acid Oil s and also doing away with the taxes and duties on bio-diesel by bringing them under the ambit of