Sagar to set up Rs 10cr jatropha unit

City-based Sagar Jatropha Oil Extractions Private Limited is setting up a Rs 10-crore jatropha oil extraction unit at Gannavaram near Vijayawada.

The company has also experienced success with contract farming of the jatropha plant in the state. Jatropha oil is mixed with diesel to produce bio-diesel.

"The construction of our jatropha oil extraction plant at Gannavaram near Vijayawada at an estimated cost of Rs 10 crore is nearing completion. Once the project is completed, we will introduce jatropha fuel at Rs 20 a litre in the market in January 2005," SBV Sagar, managing director of the company, told Business Standard.

Sagar said that the 100 per cent jatropha oil or jatropha oil mixed with diesel (biodiesel) increased engine life, cut down maintenance cost and did not pollute the environment.

The firm has supplied jatropha plants, each at a subsidised rate of Rs 18 (Rs 16 per plant plus Rs 2 towards transport costs) to farmers at Jangareddygudem, Karimnagar, Nandyal, Nalgonda, Nizamabad, Raichur, Sattenapalli, Narasaraopet, Cuddapah, Nallajerla, Koilakuntla, Gadwal, Badvel, Nandigama, Aadamilli and Jeelugumilli, covering a majority of the districts in the state.

"We purchased from farmers a kg of jatropha at Rs 6. At this rate, a farmer can make Rs 6,000 a tonne from jatropha farming in rain-fed areas. But if farmers excel in water management techniques, they can even earn up to Rs 1 lakh an acre. Besides, they can grow other commercial crops in jatropha lands. Jatropha plants give crop throughout the year and retain original quality and yields even after many years of storage and at the same time no fertilisers are required," he pointed out.

Sagar said that the company had supplied 5,00,000 jatropha plants to over 100 farmers in the state, who have planted them in about 500 acres.

"We have purchased the jatropha crop from many of them and will be soon start production of the fuel," he said. Sagar said that 300 more farmer-franchisees had paid advances for the supply of jatropha plants.

"Our target is to ensure the plantation of one crore jatropha plants in 10,000 acres by the end of this year. We have grown 50 lakh jatropha plants at our nurseries at Vissannapet, Chatrai and Nuziveed in Krishna district, and are ready to distribute them to farmers. The stem cut jatropha plants, a product of our own research and development centre, will start giving yields in just four months. Some individuals are supplying seeds, which will take four years to reach the growth standards of my plants," he said.

Interestingly, marketing opportunities abound for jatropha and farmers face no trouble from middlemen and can directly sell their produce to the company at a profitable rate, he said.

"If jatropha biodiesel is used as fuel, vehicles release insignificant quantities of harmful and poisonous emissions such as carbon monoxide and carbon dioxide. The oil is also a good lubricant. The Indian Railways has given large tracts of its waste land to the Indian Oil Corporation under contract for growing jatropha plants and supplying jatropha fuel for running its diesel engines. The Haryana Road Transport Corporation is already running many of its vehicles with jatropha biodiesel. Daimler-Chrysler recently test-ran its Mercedes Benz with jatropha fuel over a distance of 5,000 km," Sagar informed.

Sagar appealed to the Andhra Pradesh State Road Transport Corporation to use jatropha mixed biodiesel in some of its vehicles on a trial basis.

"The Centre can ultimately cut down crude imports and save lot of foreign exchange if the use of jatropha biodiesel increases. The Centre and the states have failed in implementing the jatropha project. It is now the private sector's responsibility to make it a success," he said.