The Central Government will soon formulate policies on alternate fuels like ethanol, methanol and other non-conventional fuel resources claim industry sources. They add that this is being done to bring down the crude import bill drastically. Sources claim that this was announced by road transport and highways minister Nitin Gadkari after an inter-ministerial meeting attended by Dharmendra Pradhan among others. As per the decision taken in the meeting, the petroleum ministry will formulate a policy on second-generation ethanol for approval from the Cabinet. At present ethanol is derived from molasses which amounts to an estimated 119 crore litres as against a minimum requirement of about 500 crore litres. With a supply of three per cent ethanol, and a need to mix 22 per cent in petrol, the shortage of ethanol is roughly 19 per cent. Second generation ethanol, made from raw materials like bamboo, cotton straw, wheat straw, and rice straw could help to tide over the shortage faced. It has been also decided, claim industry sources, that the petroleum ministry would also bring in a policy for production of methanol from coal.