The need for biofuels, particularly liquid ones like ethanol and biodiesel, has been felt by most of the countries and their governments have been trying to promote these fuels. Following in line with global trend, India declared its biofuel policy in which biodiesel, primarily from jatropha, would meet 20% of the diesel demand beginning with 2011-2012. In spite of the efforts made by the state, production of biodiesel, however, has not picked up at all. Doubt arises as to whether the country will be able to meet the target. It is felt that the government policy, particularly regarding land utilization, organizing cultivation of jatropha and pricing of jatropha seeds, needs to be more clear. This paper attempts to make an assessment of the state of India's biofuel programme and to identify the hurdles that policy-maker need to overcome to achieve the goal. (C) 2009 Elsevier Ltd. All rights reserved.