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Diesel engines are employed particularly in the field of heavy transportation and agriculture on account of their higher thermal efficiency and durability. As these engines, are the backbones of contemporary global transportation and accounts a 30% of world's energy consumption, which is second highest after the industrial sector. Therefore, the fossil fuel consumption becomes the prime concern. Following the global energy crisis and the increasingly stringent emission norms, the search for alternative renewable fuels has intensified. Currently, biodiesel (BD) has been identified as the most attractive and practical choice to replace fossil fuel as the main source of energy, due to the similarity in the properties with conventional diesel. However, its development and application have been hindered by the high cost of required feedstock. Therefore, in recent years, researchers have been seeking the alternative sources of non-edible oil which are economical.

The rising cost and limited availability of crude oil in international market has provided an opportunity to look for substitute of fossil fuel. Scientists all over the world are experimenting on variety of renewable fuels for meeting the future energy demands. Bio origin fuels are fast becoming potential alternative resources to replace the fossil fuels. The vegetable oils, derived from oil seed crops have got 90 to 95% energy value of diesel on volume basis, comparable cetane number and can substitute upto 20% (v/v) of diesel fuel. Mahua seed oil is common ingredient of hydrogenated fat. Two-step transesterification process was employed to synthesize biodiesel from Mahua Oil (Madhuca-indica) and analysis of Physico-chemical properties as well as the combustion, performance and emission characteristics was done by taking 10, 20 and 100 % blend with diesel. The physico-chemical properties of the blends were found to be comparable to diesel.

The interest of using alternative fuels in diesel engines has been accelerated exponentially due to a foreseen scarcity in world petroleum reserves, increase in the prices of the conventional fossil fuels and restrictions on exhaust emissions such as greenhouse gases from internal combustion (IC) engines initiated by environmental concerns. The constant trade-off between efficiency and emissions should be in proper balance with the conventional fuels in a fuel design process for future combustors. Unlike gasoline and diesel, alcohols act as oxygenated fuels. Adding alcohols to petroleum products allows the fuel to combust properly due to the presence of oxygen, which enhances premixed combustion phase, improves the diffusive combustion phase which increases the combustion efficiency and reduces air pollution. The higher activation energy of alcohols leads to better resistance to engine knocking that allows higher compression ratios and greater engine thermal efficiencies.