Bannari Amman Sugars sets up Bio Diesel Plant
Coimbatore Bannari Amman Sugars (BASL) has established a biodiesel plant at Sathyamangalam with a daily production capacity of 3,000 litres. The project cost is Rs 2 crore and the plant would crush jatropha, neem and pungam seeds for extraction of bio-diesel, said group chairman Mr S V Balasubramaniam at a press conference. The group has been engaging itself in jatropha cultivation both on its own lands and under the contract farming system. “We have currently cultivated jatropha on 1,720 acres in Coimbatore, Erode, Dindigul and Karur districts. The target is to cover 40,000 acres in a phased manner over five years,” he said.On reaching this target, the company intends to go in for a larger biodiesel plant with a capacity of 30,000 litres per day. The group supplies quality seeds procured from Tamil Nadu Agricultural University (Tnau) and arranges for necessary credit to farmers through bank loans at an interest of 7.5 %. “We have offered to waive the repayment during the first four years of the loan period. Jatropha plantation may yield an income of Rs 5,000 an acre from the fourth year and an income of Rs 15,000 an acre from the sixth year,” Mr Balasubramaniam added. Marketing of bio-diesel, according to him, would not be a problem as there is a thirst for bio-diesel all over the world because of the commitment made by countries to the Kyoto Protocol coupled with the rising cost of the crude oil.
National mission on bio-diesel on cards Inaugurating the bio-diesel plant, Mr Chandra Sekhar Sahu, Union minister of state for rural development, said a national mission on bio- diesel to address issues concerning alternative fuel use would be announced soon. The committee on development of bio-fuels set up by the Planning Commission has recommended the launching of the mission with a special focus on jatropha cultivation. “The first phase would involve plantation of jatropha on four lakh hectares of government land. The second phase would involve a self- sustaining programme with plantation of jatropha on 11.2 million hectares, including government and private lands,” the Union minister added.
