Yes Bank eyes jatropha cultivation in biofuel push

Yes Bank has discussed the possibilities of jatropha cultivation, a biofuel plant, with different state governments including Madya Pradesh, Chattisghar and Rajastan.

Once the project feasability is discussed and convinced, the bank will work on financing the jatropha fuel chain, said Kalyan Chakravarthy, vice president, development and knowledge banking group, Yes bank.

"In the close coming years radical changes are expected in the biofuel sector. Some of the corporates have approached Yes Bank envicing interest to invest in the sector. If the bank gets assurence from off takers like oil companies, we will go with the project. Jatropha, the bio-fuel plant, can be grown in waste lands and the state governments are sorting out locations for cultivation," Kalyan added.

"In the wake of the crude oil price hike in the international market, most of the countries are exploring the possibility of biofuel production. India, one of the leading petroleum consuming countries, is also searching for an alternative. As part of promotional activities, Andra Pradesh government has guaranteed farmers an income of Rs 24,000 per annum. Haryana too has announced 25 per cent subsidy per acre of jatropha cultivation. Tamil Nadu along with forest department have offered to provide seedlings and technical assistance to farmers undertaking cultivation," said Kalyan.

"Oil firms are also actively involved in the research of biofuel. Oil and Natural Gas Corporation (ONGC) will be focusing on biofuel development in the new refineries of Andhra Pradesh and Rajastan that it plans to set up. Indian Oil Corporation and Bharat Petroleum corporation Limited are in the research work. Selected instituional buyers like Indian Railwal are already employed biodiesel in their vehicle fleets. Yes Bank is working to complete the biofuel cycle by bridging plantation, production and utilisation through an integrated approach"- Kalyan concluded.

Expected annual income per hectare by growing jatropha is Rs 21,000. This will become the source of employment in rural areas. The plant will also keep the waste land wet and greeny to address the issues like global warming.

Fuel for thought

In the wake of the crude oil price hike in the international market, most of the countries are exploring the possibility of biofuel production

Oil firms are also actively involved in the research of biofuel

ONGC will be focusing on biofuel development in the new refineries