The Hindu Business Line : Panchayati institutions to be involved in jatropha cultivation

THE Petroleum Minister, Mr Mani Shankar Aiyar, has said that a joint committee of the Ministries of Petroleum and Natural Gas and Panchayati Raj has been set up to make recommendations on modalities of involving Panchayati Raj Institutions in growing jatropha plantations.

Besides providing a source of supplementary income and employment in the rural sector, the plantation of oilseed-bearing plants such as Jatropha curcus and Pongomia (from which bio-diesel is extracted) can lead to gainful use of waste/semi-arid land involving Panchayati Raj institutions, he said.

Cultivation of Jatropha curcus has been identified as a business activity to transform the rural economy, such as the Green Revolution of the past, he said addressing a joint meeting of Consultative Committee of Ministries of Petroleum and Natural Gas and Panchayati Raj on Tuesday.

The plants could be raised on community land as an additional crop without altering the cropping pattern of an area, the Minister said. Harnessing alternative fuels such as bio-diesel is of tremendous importance with over 7 per cent growth envisaged for the economy.

One of the critical ingredients to achieving that is the energy security when the country is about 70 per cent import-dependent for oil, which would further go up to about 85 per cent by 2020. Bio-diesel is also highly environment-friendly.

Considering the significant implication of producing bio-diesel, the Government has envisaged a National Mission in Bio-diesel and a Detailed Project Report (DPR) has been prepared for obtaining `in principle' approval of the Planning Commission.

The Petroleum Ministry has committed to the nodal Ministry — the Ministry of Rural Development — that the oil marketing companies will extend blending and marketing support for purchasing bio-diesel produced through the National Mission.

On the suggestion for adopting plantation of bio-diesel plants as a centrally sponsored scheme, the Minister said this would be considered by the Government when the DPR is taken up with the Planning Commission. The details about cost-economics of undertaking jatropha plantations would also be made public for the benefit of farmers and Panchayati Raj Institutions.

In a presentation to the members, it was informed that the experiments by oil-marketing companies in use of bio-diesel blended with diesel in transportation have given technically satisfactory results. As the experiments have revealed cost of bio-diesel as an issue, fiscal concessions required for promoting bio-diesel may include exemption from import duty on bio-diesel, plant and machinery and excise relief, etc.

Under the directions of the Petroleum Ministry, the Petroleum Conservation and Research Association (PCRA) has opened a bio-fuel centre and is working on building awareness for Jatropha curcus cultivation and manufacture of bio-diesel.

Besides, Indian Oil Corporation and Hindustan Petroleum Corporation are experimenting with various mixes of bio-diesel with diesel in State Transport Corporation buses in Haryana and Gujarat and Mumbai.

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