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L.N. Revathy

Production likely to begin in July

Coimbatore , March 2

Bannari Amman group is putting up a bio-diesel plant at Sathyamangalam with a daily crushing capacity of 3,000 litres.

The commercial production is expected to commence in July. The plant would crush jatropha, neem and pungam seeds for extraction of the bio-diesel, said the group Chairman, Mr S.V. Balasubramaniam.

The company is eventually planning to enhance the crushing capacity ten-fold, by expanding the area under jatropha in a phased manner. "We have currently cultivated jatropha in 2,000 acres. The area is expected to double by June," he told Business Line.

Mr Balasubramaniam claimed that his group was one of the earliest and among the few organised jatropha plantations in the country.

Jatropha was raised both on the land holdings held by the group and under contract farming. The company is proposing to buy the seeds from self-help groups.

It has enthused growers to take to jatropha cultivation by offering them crop insurance and finance assistance at 7.5 per cent. "We have offered to waive the repayment during the first four years of the loan period."

Marketing of bio-diesel, according to him, would not be a problem as "there is a thirst for bio-diesel all over the world because of the commitment made by countries to the Kyoto Protocol coupled with the rising cost of the crude oil."

Though the group has not committed to sell the bio-diesel to any company at present, he expressed confidence about the huge market potential for the product from the enquiries that had started to pour in.

More Stories on : New Projects | Sugar | Non-conventional Energy

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