The company has a capacity to produce 30 million gallons per day of biodiesel and allied products at its Kakinada plant commissioned recently. "Biodiesel usage would increase with the rise in fossil fuels,'' he said, adding absence of a biodiesel policy was hampering the expansion plans of biodiesel companies. Naturol currently imports raw material and oil seed from Indonesia.
The company is exporting biodiesel at $1,350 per tonne (about Rs 54,000) as per the flat price quoted for ultra low sulphur diesel (ULSD) fuel. This works out to Rs 48 a litre excluding the freight charges. The government should provide subsidy to biodiesel on the lines of fossil diesel (Rs 35 to 40 per litre) to boost the industry, he said.
Naturol is growing jatropha and other oil seeds in 5,000 hectare in the state under contract farming. It plans to use jatropha feedstock extensively and is looking at complete captive sourcing of the required feedstocks in future.
The company will invest $40 million (Rs 160 crore) over the next two years for expanding its operations. "We are in talks with a few investors for raising this money,'' he said. It is awaiting approvals for domestic sales through oil majors.
