The Hindu Business Line : AP plans Rs 5,000-cr bio-diesel plantation project

THE State Government has decided to facilitate large-scale cultivation of bio-diesel plants such as jatropa and pongamia in over 50 lakh acres at an investment of around Rs 5,000 crore over the next three years.

The move is aimed at ensuring a sustainable income for farmers in the arid areas and to effectively implement the rural employment guarantee programme.

Announcing this here on Monday, the Chief Minister, Dr Y.S. Rajasekhara Reddy, said the Government proposes to contribute around 60 per cent of the cost, about Rs 2,800 crore, while banks will extend lending support for the balance (Rs 2,200 crore).

The Government has also decided to set up a high-level bio-diesel board, to be headed by the Chief Secretary, to coordinate bio-diesel plantation in 22 districts of the State, of which 13 districts are covered under the National Rural Employment Guarantee Scheme.

The State Government has also decided to offer a minimum support price of Rs 6 per kilogram of bio-diesel seeds and proposes to earmark a Rs 5-crore fund towards this in the next budget.

Stating that the Girijan Corporation and the women self-help groups (SHGs) under the Indira Kranthi scheme will be permitted to procure bio-diesel seeds from the farmers, the Chief Minister said the State-owned AP State Road Transport Corporation would buy the entire bio-diesel production.

For extracting bio-diesel from the seeds procured across the State, the Government proposes to encourage women SHGs to set up expelling units with a capacity of 2.2-lakh tonnes per annum, involving an investment of around Rs 4 lakh.

The Government also plans to invite expressions of interest from corporate houses and non-governmental organisations towards setting up bio-diesel extraction units.

The tripartite initiative among the State governments, farmers and corporate houses will be aimed at setting up bio-diesel extraction units in at least 10 mandals in each of the 13 districts covered under the rural employment guarantee scheme. In the case of the nine other districts, the Government proposes to encourage extracting units in five mandals of each district.

Having reported bio-diesel plantation in around 36,000 acres, the Government proposes to set up bio-diesel plant nurseries in a major way this year.

According to the Chief Minister, the bio-diesel plantation will be taken up in 17 lakh acres per annum for the next three years. The farmers can expect to reap an income of Rs 5,000 to Rs 10,000 per acre per annum from the fourth year onwards, he said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page