| Speaking to Business Standard on the sidelines of BioAsia 2005, R Mandal, member, Planning Commission (Bio-Diesel Committee of India), said, "The government plans to cover 11 million hectares of bio-diesel plantations in the next seven years and D1 Oils has taken it upon itself to cultivate five million hectares." |
| D1 Oils proposes to procure seeds from bio-diesel plantations in six African countries where its has a presence. "The company has already entered into marketing, technology bartering and buyback agreements in Tamil Nadu," he said. |
| Mandal also said that D1 Oils is in talks with other state governments like Andhra Pradesh, Chattisgarh, Gujarat, West Bengal and Rajasthan. |
| "Since land is a state subject, we would like various state governments to come forward to help companies invest in the sector," he said. According to him, alternate fuels are the need of the hour because of the increasing crude oil prices in the international market. |
| "In the last 12 months the price of crude oil has shot up over 40 per cent which is a major cause of concern and it looks like there will not be a drop in the prices in the near future. So governments must provide incentives for companies who wish to invest in the alternate fuel sector," he said. |
| Mandal also said that the Union government has sought a report from the Tata Environmental Research Institute (TERI) for a strategy to promote the 11 million hectares of plantations in the country. |
| "On a pilot basis we have targeted 2.5 million hectares in the next two years at an investment of around Rs 1,500 crore which includes capital investments, cultivation costs and other incentives. A meeting in this regard is scheduled to be held soon," he said. |
| It is estimated that if the government projections are implemented it would cover around 20 per cent of bio-diesel requirements of the country. He also said that covering the other six million hectares is not a big issue as many Indian corporates have evinced interest in the sector. |
| "Six Indian companies have firmed up plans to invest in the sector. But I cannot disclose the names at the moment as some announcements are expected soon," Mandal added. |
| According to him, companies are coming forward because the market is assured and all they need is land which the state governments are ready to provide. "The cause of concern, however, is on how the buyback agreements would take shape," he added. |
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