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New Delhi May 17 The Indian Railways is considering setting up four esterification plants for producing biodiesel, having already taken up plantation of jatropha on available spare land. Esterification is the process to take out jatropha extracts for blending with diesel.

It is considering a move to float tenders for buying biodiesel in bulk to use blended fuel in locomotives.

Replying to a question asked in the Lok Sabha by a Member of Parliament, Mr Basudeb Acharia, the Minister of State for Railways, Mr R. Velu, said, "To assess the availability of biodiesel, an expression of interest was called in February this year and about 25 parties participated in the meeting."

The cost effectiveness of blended biodiesel can only be ascertained after the receipt of offers, said the Minister.

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