Biofuel development in India centers mainly around the cultivation and processing of Jatropha plant seeds which are very rich in oil (40%). The drivers for this are historic, functional, economic, environmental, moral and political. Jatropha oil has been used in India for several decades as biodiesel for the diesel fuel requirements of remote rural and forest communities; Jatropha oil can be used directly after extraction (i.e. without refining) in diesel generators and engines. It has the potential to provide economic benefits at the local level since under suitable management it has the potential to grow in dry marginal non-agricultural lands, thereby allowing villagers and farmers to leverage non-farm land for income generation. As well, increased Jatropha oil production delivers economic benefits to India on the macroeconomic or national level as it reduces the nation's fossil fuel import bill for diesel production (the main transportation fuel used in the country); minimising the expenditure of India's foreign-currency reserves for fuel allowing India to increase its growing foreign currency reserves (which can be better spent on capital expenditures for industrial input.
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