The economic development of a nation is directly dependent on the per capita energy consumption. In developing countries like India, the energy consumption is increasing with increase in population and industrialization.The crude oil consumption constitutes the largest share of total energy consumption in India. As an estimate, more than 80% of petroleum product is imported from oil producing countries putting heavy pressure of foreign exchange looking at the huge consumption of petroleum diesel in transportation, industry, commercial sector and others. There is a need to search for alternative to diesel. In India, about 60 Mha of waste land and road/ rail network track side is available that can be utilized for growing the resources for non-edible oil production which can further be converted into biodiesel, used as diesel fuel substitute. Pongamia is a drought-resistant perennial, growing well in marginal/poor soil. Pongamia, the wonder plant produces seeds with an oil content of 30%. The oil can be combusted as fuel without being refined. It burns with clear smoke-free flame, tested successfully as a fuel for simple diesel engine.