Govt must form policies to aid alternative fuel sector: BAI

News Digest

The Biodiesel Association of India today sought a proper policy framework to aid the production of the alternative fuel and said the sector could generate revenues of Rs 33,000 crore a year.

"China took the 'Jatropha' idea from India and is speeding ahead, while we are nowhere in the race. Though, biodiesel had attracted a lot of media attention a couple of years back, it has not been translated into any policies," BAI president Sandeep Chaturvedi told reporters. Jatropha plantation would need an investment of around Rs 28,875 crore, while the total investment would be of around Rs 50,000 crore.

But, it was a one time investment, as the facility would continue to yield around 11 million tonnes of oil for next 37 years, Chaturvedi said.

The sector would also generate around four lakh jobs, he said, adding BAI feels the sector should be given emphasis and certain allocation of funds in the 11th plan.

"We need allocation of around Rs 28,700 crores over the next five years," he said, adding many other countriesgive incentives to producers of biodiesel, but India does not.

"Finland, Germany give incentives... Whereas in India they have fixed a price of Rs 26.50 per litre which is the cost of the raw material itself," he said, adding it should be at least Rs 33, besides the cost of transportation.

The sector needed other alternative raw material such as waste recycled oil and non-edible oils for running factories and a clear cut policy for land utilisation, he added.

Decision on sugar export ban by weekend

The government is likely to take a decision on lifting ban on sugar exports by this weekend, Commerce and Industry Minister Kamal Nath said today.

"We are likely to lift the ban on sugar exports. A decision on the same is expected to be taken by the end of this week," Nath told after his meeting with Finance Minister P.

Chidambaram and Agriculture Minister Sharad Pawar. The sugar industry has been demanding that the ban on sugar exports be lifted as it sees a glut in the market on the back of higher output projections for the current season.

The government had banned sugar exports in June in an effort to curb prices and check inflationary pressure.

According to government and the industry estimates, sugar output in the current year to September will touch 23 million tonne compared with 19.3 million tonne a year earlier.