With a view to find a long term alternative to scarce petroleum products, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Thursday assured full support to promote renewable energy sources and favoured giving tax incentives to make biofuels economically feasible.

"Petroleum prices will rise over a longer period and we must plan for such a scenario. We should work on alternatives such as biofuels and make them economically feasible," he said at a seminar on biofuels, organised by Winrock International, New Delhi.

If biofuels have the same tax as petrol and diesel, these will not be economically viable, he said, adding, fuels like jatropa (a mainly tropical genus of American plant belonging to the family Euphorbiaceae) and bio-diesel should be free from taxes.

The tax incentives need not be cash subsidy as in the case of kerosene, which the country imports, he added.

At present, we are not doing enough in the field of renewable energy compared to other fuel import-dependent countries, he said, adding work has to be accelerated to achieve energy security.

The Planning Commission is already working on finalising a National Energy Policy, he said. The policy would also take into account renewable energy sources along with conventional sources. The mid-term appraisal of the Tenth Plan would also focus on the policy, he added.

Earlier, secretary, ministry of non-conventional energy Sources, A M Gokhale, said the Ministry will begin a programme for using renewable energy in over six lakh villages in a couple of months.