The Hindu Business Line : Foundation stone laid for Rs 17-cr bio-diesel plant at Nalgonda

THE German Ambassador to India, Mr Heimo Richter, on Thursday laid the foundation stone for the Rs 17-crore bio-diesel project here, claimed to be the first commercial bio-diesel plant in the country.

The project, being taken up by Southern Online Bio Technologies Ltd (SBT), would be operational by November-end. It would produce 10,000 tonnes of bio-diesel annually.

Later addressing a gathering, Mr Richter said the project was promising, keeping in mind the growing pressure for petrol and diesel in India. "If this is successful, it will be replicated all over India," he said.

The German Government recently approved a grant of 3.80 lakh euros (Rs 2 crore) for the project.

Besides, Lurgi AG, a Frankfurt-based company, and its Indian partner, Chemical Construction International (New Delhi), would provide technical support.

Mr N. Satish Kumar, Managing Director of SBT (formerly known as Southern Online Services Ltd), said the company would go for a second public issue to fund the project. The company proposed to raise Rs 11.4 crore through the issue, while coming out with a rights issue to raise Rs 5.7 crore.

He said the company had already entered into buyback pacts with some farmers. "The plant will be zero-effluent. The use of bio-diesel produced at the unit would help avoid 27,000 tonnes of carbon dioxide a year."

He said the company received the `host country' approval from the Ministry of Environment, entitling it to sell carbon points. He claimed that the company received expression of interest for buying such points from a consortium of European companies.

The plant would consume seeds of pongamia, jatropha, neem and other oil-bearing trees.

Bio-diesel would be blended with regular diesel for use in vehicles. The eco-friendly oil substantially reduced vehicular emissions. "We have got queries from the Railways, the Visakhapatnam Municipal Corporation and the AP Lorry Owners' Association," he said.

Once completed, the plant would support 1,500 people. SBT sought to raise three million trees on 500 acres in the next three years.

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