Automobile and farm equipment major Mahindra & Mahindra today launched a bio-diesel compatible tractor Arjun International 75757 targetted at the Maharashtra market.Sanjeev Goyale, senior VP (sales & marketing), M&M's Farm Equipment division, said the new range of tractors will be able to use a fuel mix that has up to 5% bio-diesel, which has been enabled by the new fuel injection system developed by the company's R&D team.The tractor can also be run without bio-diesel.Goyale said the company will use major towns in the state as hubs to supply bio-diesel within a radius of up to 50 km.M&M dealers in these hubs will stock bio diesel and distribute it within their territories.The new tractor was unveiled at Kisan 2007, a national exhibition of range of products and services directed at the farming community. Goyale said Maharashtra is the top selling market for the company with sales of 18,000 units per year - 40% of tractor sales in the state.Goyale said all tractors made by M&M will now be bio-diesel compatible and the company is looking at upgrading the range to make products that can take 10% bio diesel.