Usage of biodiesel fuels and their blends with diesel fuel has a potential to reduce the tailpipe emissions and reduce the dependence on crude oil imports. Further, biodiesel fuels exhibit favourable greenhouse gas emission and energy balance characteristics. While fossil fuel technology is well established, the technological implications of biofuels particularly biodiesel is not clearly laid out. Hence, the objective is to provide an on-board metering control in selecting the different proportions of diesel and bio-diesel blends. An on-board fuel metering system is being developed using PID controller, stepper motors and a capacitance sensor. The accuracy was tested with the blends of propanol-1, diesel and are found to be within 1.3% error. The developed unit was tested in a twin cylinder diesel engine with biodiesel blended diesel fuel. There was a marginal increase (5%) in nitric oxide and 14% increase in smoke emission with 10% biodiesel blended diesel at part load conditions. © 2017 Published under licence by IOP Publishing Ltd.