Oil PSUs to purchase biodiesel at Rs 25/ litre

Public sector oil firms will purchase bio-diesel extracted from plants, such as jatropha, for mixing in diesel at Rs 25 a litre beginning January 1.

Five per cent non-edible oil from jatropha, pongamia etc (bio-diesel) will be mixed with diesel during trial runs and the percentage will be increased to 20 in phases, petroleum minister Mani Shankar Aiyar said, unveiling the new bio-diesel purchase policy here.

Automobile engines do not require any modification for using diesel doped with 20 per cent bio-diesel as fuel, he said.

"It is imperative that bio-diesel offered for blending in diesel is of standard quality. Therefore, it would be necessary that only those bio-diesel manufacturers who get their samples approved and certified by the oil companies and get registered as authorised suppliers would be eligible for assured purchase of the product," the new policy states.

With effect from January 1, the public sector oil companies - Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation - would purchase bio-diesel that meets fuel quality standard prescribed by Bureau of Industrial Standards (BIS). The purchase will be done through its select purchase centres.

"The purchase centres have been identified," the policy said. These are located at Ghatkesar in Andhra Pradesh (also for Jharkhand and Orissa), Mandirhasaud in Chhattisgarh, Bijwasan in New Delhi, Kandla in Gujarat, Rewari in Haryana, Devanagunthi and Mangalore in Karntaka, Manmand, Borkhedi-Nagpur, Loni and Vashi in Maharashtra, Bhatinda in Punjab, Sanganier-Jaipur and Salawas in Rajasthan, Korrukupet, Chennai, Narimanam and Karur in Tamil Nadu and Panki and Amousi-Lucknow in Uttar Pradesh.

"The oil marketing companies shall buy bio-diesel that meets the prescribed BIS norm at a uniform price as may be decided by the oil marketing companies from time to time, depending on market conditions," the new policy said.

"The initial purchase price of bio-diesel by the oil marketing companies will be Rs 25 per litre," it said.

Jatropha can be planted on degraded forest land, farmers' field boundaries to provide protective hedge, fallow land, on farmers' holdings as agro-forestry along with agricultural crops, public lands along railway tracks, highways, canals, community and government land in villages.

"Such plantation can also be done under the poverty alleviation programmes of the government," the policy said.

IN NATURE'S LAP

5% non-edible oil from jatropha, pongamia to be mixed with diesel on trial

The policy puts in place a system to ensure quality

The product should conform to BIS quality norms

Samples need to be certified by oil companies to be eligible for assured purchase

Manufacturers should also get registered as authorisd suppliers

Oil marketing firms to purchase bio-diesel at uniform price