Industry calls for increase in bio-diesel sale price

NEW DELHI, DEC 5: The Biodiesel Association of India (BAI) on
Tuesday called for an increase in the selling price of bio-diesel to
make its production economically viable. The proponents of bio-
diesel have come together to form Biodiesel Association of India
(BAI) to press their demand.The government had fixed the ex-refinery
bio-diesel sale price at Rs 25 per litre in October last year, and
later revised it to Rs 26.50.
The industry, however, feels it should be allowed to sell it at par
with diesel prices as raw material sourcing is a problem.

Diesel is currently sold in Delhi at Rs 31.35 per litre.

Advocates of bio-diesel have suggested to the government to create
adequate environment for facilitating an investment of Rs 30,000
crore in the sector in the next three years. Out of this proposed
investment of Rs 30,000, about Rs 20,000 crore should be earmarked
for investment in processing of oil from jatropha and the remaining
for its cultivation.

According to BAI, the proposed Rs 30,000 crore investment in three
years would generate permanent employment for 4 million people. If
the programmes run as per schedule, it would result in an annual
turnover of Rs 33,000 crore for the next 35 years and result in
saving of Rs 25,300 crore in foreign exchange outgo, which is mainly
due to huge bulk import of crude oil.

Addressing a press conference here on Tuesday, BAI president,
Sandeep Chaturvedi, said: “There are about 55 million hectares of
wastelands in the country. These wastelands can be used for
cultivation of jatropha. We have asked the Union government for a
comprehensive policy on bio-fuels and sympathetic consideration of
state governments for the programme.”

On pricing, he said that bio-fuel oil should be priced at par with
the retail prices of diesel. Chaturvedi is also the director of
Gujarat Olio Chem Ltd and BAI has three vice presidents - Emani
Biotech director, SK Mondal for eastern region, Garware Chemicals
director, AM Deshpande for western region and Nova Biofuels director
Rajiv Gulati for the northern region.

“The government policy need to clearly demarcate food security
concerns and facilitate cultivation of Jatropha on wastelands. No
crops used for food should be used for production of bio-diesel,”
said BAI secretary and chairman, Cleancilies Biodesel India,
Srinivas Prasad Moturi.
http://www.financialexpress.com/fe_full_story.php?content_id=148187

[COMMENTS: Other options are also there. Instead of planting
Jatropha use the existing plant species like Karanj for preparing
biodiesel. Many weeds are having potential to be used as biodiesel
like Calotropis as mentioned in website of Central pollution control
board of India. Use of weeds means very reduced cost of raw
material. This will make the dream of Biodiesel true in real sense.
From these sources cheap biodiesel can be extracted. Why there is
blind race for only one species i.e. Jatropha, having proven record
of nuisance around the world?]