The Hindu Business Line : Alternative fuels

In response to the recent international crude oil price increase, the Government has reacted like a trading house by simply increasing the price of the petrol, diesel and cooking gas.

As the situation is now getting out of control, it is necessary for the Government to initiate some appropriate long-term solutions to the problem, which can be done only by a fundamental change in the strategy for industrialisation and economic growth. There has to be a greater focus on more appropriate areas of industrialisation, such as agro-based and mineral-based projects at the cost of petrochemical projects.

The unfortunate fact is that the Government has been permitting, without application of mind, huge capacity creation for automobiles, which not only leads to high petroleum consumption but also puts a strain on the roads.

Steps were initiated by the earlier NDA government to mix petrol with ethanol as a measure of reducing dependence on petroleum products.

This was a pragmatic exercise, though it faces initial teething problems. Unfortunately, this has not been followed up by the present Government at the Centre and it is reported that the oil companies have not even finalised tenders for the purchase of ethanol for blending with petrol for the period 2004-2005.

The promotion of bio-diesel as a substitute for reducing the consumption of diesel is a pragmatic step, and jatropha has been identified as the ideal fuel crop.

However, there are fundamental issues involved in using jatropha, which have to be tackled by way of innovative R&D work. In the absence of such efforts, it may even happen that bio-fuel could be a non-starter in the country, which would be a sad turn of events.

N. S. Venkataraman

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