The Hindu Business Line : Tractor cos gear up to launch alternative fuel-based variants

New Delhi, June 28 The escalating fuel prices have led the tractor companies to explore the possibility of launching alternative fuel-based variants. Escorts is looking at launching a CNG-diesel based tractor this year.

“We would be ready to launch a CNG-diesel and a bio diesel compatible tractor by September-October this year,” said Mr Rohtash Mal, Executive Director and Chief Executive Officer, Escorts Agri Machinery Group.

The company said that despite bottlenecks in the fuel infrastructure, there could be demand from villages in the eastern part of Rajasthan, Haryana, Punjab, which are located in proximity to cities and are well connected with CNG stations.

At the current level, the diesel costs around Rs 35 a litre and the price of CNG is around 18. According to the industry estimates, the saving incurred by the farmer on the operational cost of running a tractor is expected to be in the range of 35-40 per cent.

Mahindra and Mahindra, with the largest share in the domestic tractor market, has spoken of its intention to introduce alternative range of tractors.

The company had said that it was testing the vehicles, after which it would launch it on a commercial scale. Companies such as Sonalika and TAFE (Tractors and Farm Equipement Ltd) have expressed the availability of infrastructure in the remote areas a major issue in their plans of going ahead with the new products.

“We are ready with a bio diesel range of tractors that can be run with 5 per cent blend of alternative fuel. Even as we weigh alternative fuel options, the first issue that occurs is the lack of distribution network for CNG-powered tractors in rural India. While technically, the industry would be ready, practically it would take a longer time for the sales of such tractors to take off,” said an official from TAFE.

On similar grounds, Mr L.D. Mittal, President, Sonalika Group of companies, said, “We have no such plans to launch such products as fuel availability remains a matter of concern.”

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