The Hindu Business Line : `Biodiesel success depends on supportive policy'

There is a suggestion that oil PSUs need to come up with proactive supportive policies to encourage production of cleaner greener fuels. `Vegetable oil industry ideally suited for biodiesel ventures'

Mumbai June 11

, Biodiesel has a bright future in the country; but there are issues relating to project implementation, role of public sector units in oil business, taxation system as also marketing and government support that need close attention, according to Mr Raju Mansinghka, promoter-member of the newly-formed Biodiesel Producers' Association of India.

Talking to Business Line after participating in a day-long biodiesel conference in Hyderabad on June 9, Mr Mansinghka asserted that despite facing various constraints, the country's vegetable oil industry was ideally suited to make a successful foray into biodiesel ventures. It would be a natural extension of the existing line of business for them because of close linkage with the raw material.

The oil PSUs have so far been lukewarm to the idea of biodiesel. There is a suggestion that these companies need to come up with proactive supportive policies to encourage production of cleaner greener fuels. Oil PSUs could extend capital assistance or enter into joint venture with biodiesel producers. This would support small growers of oilseeds or tribals collecting minor forest produce.

Vision plan

Recommending a 10-year vision plan for the country's biodiesel industry, Mr Mansinghka said an appropriate policy environment that looks at providing support and incentives (including duty exemption on plant and machinery import) should be put in place, while the State governments should grant fast-track clearance for these projects.

Consumer freedom

On the current policy of oil PSUs seeking supply of biodiesel at Rs 28.50 a kg, he said it was not feasible. According to him, a free marketing policy should be adopted as a result of which consumers should have the freedom to buy and use biodiesel without depending on petrol pumps for supply.

Mr Mansinghka has set up a 40,000-tonne-per-annum biodiesel plant near Kolkata and is actively engaged in bringing all stakeholders on a single platform.

Currently, there are two units in Andhra Pradesh, one each in Haryana and Punjab. Many new players are likely to enter the sector. The seminar on biodiesel discussed issues relating to cultivation of raw material, processing and marketing of finished good.

More Stories on : Events | Non-conventional Energy

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

Stories in this Section
Pulses importers upset

Karnataka Govt to extend loans to fishermen at 4% interest

Farmers in trouble

Rising output

Mixed trend at Kochi tea auction

Bt cotton acreage up, but no major fall in pesticide consumption seen

`Affordable Bt cotton tech helped China top output'

Global vegetable oil prices likely to firm up

KS Oils board okays edible oil plant acquisition

Pepper may witness demand

Maize likely to move up

Coffee headed down as bears take firm grip

`Biodiesel success depends on supportive policy'

Farmers dig up expressway