Gujarat Oleo delivers bio-diesel to IOC

Company in talks with HPCL, BPCL

The Ankleshwar-based Gujarat Oleo Chemicals Ltd (GOCL) shipped the first commercial consignment of bio-diesel to Indian Oil Corporation Ltd (IOC) on Saturday.

IOC will use the bio-diesel in test trials for the railways.

Derived from the jatropa plant seed, whose cultivation is being promoted by the Gujarat government, the first consignment of 450 kilo litre of bio-diesel was handed over to IOCL at Ankleshwar on Saturday.

GOCL managing director Sandip Chaturvedi said while the company has become the first Indian company to provide bio-diesel to a public sector oil major, OICL may pick up another consignment from the company in the near future.

"Now that we have delivered the first consignment of bio-diesel to IOCL, they could soon take up another consignment from us," said Chaturvedi.

He said public sector oil majors Hindustan Petroleum Corporation and Bharat Petroleum Corporation have also initiated talks with the company for bio-diesel.

"These talks are still at an initial stage, so not much can be disclosed now. We are hopeful that a few more orders will come through soon," said Chaturvedi.

At present priced below Rs 45 a litre, Chaturvedi said the price of bio-diesel could come down further, if the government provides tax exemptions.

He said in the United States and European countries as much as two million tonne of bio-diesel is used every year.

"The United States and a few European countries have used palm oil and rape seed to generate alternate fuels. But these are not available in India, so the jatropa plant, which is available in abundance, must be utilised in full," he said.

About one hectare of jatropa plant produces three tonne of seeds.

Three tonne of seed produces about 1.50 tonne of jatropa seed oil, which can be converted to bio-diesel.

"We are looking at a long-term relationship with the state government, where we can source jatropa from the government and share the profits," he said.

Gujarat Oleo Chemicals is the first Indian company to set up a continuous cracking plant of castor methyl esters.

GOCL also manufactures hydrogenated castor oil, hydrostearic acid and methyl hydroxysterate.

Gujarat Oleo Chemicals's research and development facility is recognised by the Union ministry of science and technology.

A joint venture between the state government and the department of technology in the centre, Gujarat Oleo Chemicals posted a turnover of around Rs 55 crore last fiscal.