The state-run Andhra Pradesh State Road Transport Corporation (APSRTC) has issued a notification to procure biodiesel through open tenders, according to a release issued here today.
All depots in Telangana and Andhra Pradesh would operate buses using biodiesel on a large scale, the APSRTC release said.
The step has been taken to cut down mounting fuel expenditure and conserve the environment.
Presently, APSRTC consumes 50 crore litres of high speed diesel per annum and replacing 10 per cent of it with biodiesel would save around Rs 30 crore per annum, the release said.
The State Road Transport Corporation (Telangana and Andhra Pradesh) spent Rs 2,367 crore on high speed diesel alone during the FY 2013-14 and increasing prices of high speed diesel has become a heavy burden, the release said.
The APSRTC had used biodiesel in 19 depots on an experimental basis from 2008 to 2010, but biodiesel manufacturers were not ready to supply it to the APSRTC at economically viable prices due to high prices of raw material and escalation in production costs.
"However, as the gap between the prices of biodiesel and high speed oil widened due to the steep increase in the cost high speed diesel in recent months, biodiesel manufacturers are coming forward to supply it at Rs 6 to Rs 7 lesser per litre than the price of high speed diesel," the release said.
Fuel blended with 10 per cent biodiesel would reduce pollutants like carbon monoxide, particulate matter and unburnt hydrocarbons to a considerable extent, the release said.
