Williamson Magor to grow jatropha

Williamson Magor & Co has entered into a memorandum of understanding (MoU) with D1 Oils Plc, UK-based low cost producer of biodiesel, to form a joint venture Company to develop jatropha plantations.

The joint venture company would promote and facilitate jatropha plantations through contract farming, and would arrange for necessary logistics and facilities for production of biodiesel from the oil seeds harvested by the farmers.

Aditya Khaitan, director of Williamson Magor & Co said, biodiesel would make a lot of sense for us.

To start with, the company would take up a pilot project covering 25,000 hectares.

Khaitan said that the jatropha plantations business would be spread over Assam, Meghalaya, Jharkhand and Rajasthan.

The company believed that with the rising oil prices the government would come out with a biodiesel policy.

The joint venture company could also use the unutilised land in the tea estates but Khaitan explained to for commercial viability of the business they would have to explore possibilities beyond the tea estates.

The joint venture company would have an equal partnership between Williamson Magor & Co and D1 Oils plc..

D1's direct investment in India is currently estimated at approximately £1.5m this year.

The company's potential investment in India over the next five years in the cultivation of jatropha and the production of biodiesel including jatropha cultivation was to the tune of £300 million.

The investment would be by way joint venture and third party oil supply agreement partners, bank loan finance for farmers facilitated by D1, National and State Government support and investment by D1 itself.