The Hindu Business Line : Biodiesel policy

This is with reference to the Tamil Nadu Government’s New Industrial Policy, a 33-page booklet released by the Chief Minister, Mr M. Karunanidhi, on November 5, 2007.

Some of the incentives announced for the bio-diesel industry are excellent and bound to be welcomed by the stakeholders.

The new policy says that 50 per cent subsidy will be granted to farmers for purchase of Jatropha seedlings.

Micro-irrigation facilities are also available to farmers who can group themselves as clusters of 25-hectare areas for plantation of Jatropha.

Jatropha seeds are not taxed and there is also no VAT for Jatropha oil mills for a period of 10 years right from the date of commencing production. And if read with the Finance Ministers Budget proposals, there is also no Central excise duty for the bio-diesel produced from Jatropha or any vegetable non-edible oils to produce bio-diesel.

So, Tamil Nadu is , it seems, a pioneer in promoting alternative fuels and making the manufacturing environment conducive for those in the bio-diesel sector.

This is the first time agriculture has been given the top importance that it deserves, and the industrial policy has apparently been drawn up after a lot of good home-work by those behind it. All that remains now is the implementation.

S. A. Alagarsamy, Chennai

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