The Hindu Business Line : Jatropha plantation: `Rlys must lower extent of revenue-sharing'

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Jatropha plantation: `Rlys must lower extent of revenue-sharing'

Mamuni Das

Current norm of 50 pc not attractive to private players

The study by consultant Grow Diesel Ventures has suggested that the extent of sharing be lowered to "as less as a 20 per cent range."

JATROPHA PLANTS being raised in railway land near Tiruchi.

New Delhi , Nov. 21

Railways may ease revenue-sharing norms for undertaking jatropha plantation on a public private partnership (PPP) basis in a big way. The extent of revenue-sharing should be lowered considerably from the present level of 50 per cent to make the private sector interested in jatropha plantation projects on Railway-owned land, Grow Diesel Ventures, a consultant engaged by the Railway Ministry, has advised.

The consultant was engaged to develop a `market-friendly' agreement framework for joint ventures in commercial plantation of jatropha.

Jatropha is an environment-friendly oilseed plant, which is used to produce bio-diesel. The Railways has successfully experimented running locomotives using jatropha-oil blended diesel.

The study has suggested that the extent of sharing be lowered to "as less as a 20 per cent range", said a senior official. He, however, declined to share the exact details of the study. The Ministry would take a decision on the issue based on the study, he said.

The norms

According to the present norms, the party undertaking commercial jatropha plantation on land owned by Railways is required to part with 50 per cent of its revenues to the Indian Railways. The policy envisages Railways providing land on lease for 15 years, while the private player invests in jatropha saplings and maintains the plantation. However, with these conditions, the private sector was not forthcoming to undertake jatropha plantation.

The Railways has a target to plant 72 lakh jatropha saplings on its land in the current fiscal as against 61 lakh saplings in 2005-06. The Southern and Northern Railways have already run trains on bio-diesel blended fuel. The Railways plans to use the arid and semi-arid surplus land belonging to the organisation outside the station areas for planting jatropha trees for generating bio-diesel for captive consumption.

The Railways had initiated jatropha plantation at four sites based on joint venture— three under the North Eastern Railways and one under Southern Railway.

Apart from commercial plantation through joint ventures, the Railways also plants jatropha through departmental plantations. In departmental plantations, the Railways usually pays contractors to plant jatropha saplings and maintain them for two-three years.

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