GOCL to set up bio-diesel unit in Andhra Pradesh

Ankleshwar-based bio-diesel company, Gujarat Oleo Chemicals (GOCL), will be setting up its second largest bio-diesel manufacturing unit in Andhra Pradesh after it secured Rs 100 crore bio-diesel supply order from Andhra Pradesh State Road Transport Corporation (APSRTC).

Talking to Business Standard about the plans, Santosh Pathak, chairman of GOCL, said, "We will set up our second major production unit at Kakinada in Andhra Pradesh (AP) as we had secured a colossal bio-diesel supply order from APSRTC."

GOCL will be investing Rs 30 crore for this unit in Andhra Pradesh.

Explaining the reason to set up a bio-diesel unit in AP, Pathak said, "To transport bio-diesel from our Ankleshwar unit to AP, we will raise bio-diesel cost by Rs 2 to Rs 3 per litre due to transportation cost."

He further added that keeping in view the long run strategy of the company, it will be technically and financially viable to set up a unit near a consumption centre.

The company will set up a production unit with a capacity of 50 tonne per day in Kakinada especially to cater to the bio-diesel demands of APSRTC.

The current production capacity of GOCL is 10 tonne per day at its Ankleshwar unit in Gujarat.

"APSRTC has the largest fleet of buses in the country making it an important customer for us to cater," said Pathak.

"Recently, GOCL has secured bio-diesel supply order from APSRTC at Rs 40 per litre," he added.

GOCL is also in advance stage of negotiation to transfer its own technology with a US-based bio-diesel company.

Pathak, said, "We will be transferring our technology on turnkey basis to a Florida-based company in US."

"We have already visited and inspected the proposed construction site that will be used for setting up a bio-diesel production unit in Florida," he added.

GOCL will receive US $ one million to supply its state-of-the-art technology to the Florida-based company.

However, Pathak clarified that GOCL is only engaged into transfer of technology and will not invest in setting up of the any unit in Florida.

However as per the company, it will commence its commercial production in its new upcoming bio-diesel unit at Kakinada (AP) by 2007-08.