Lack of raw material, govt pricing dash biofuel dreams
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07/04/2010
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Business Standard (New Delhi)
The biofuel industry is finding it tough to remain in business, with both government pricing and raw material availability working against them.
The government, on its part, has launched a massive programme to develop high-yielding varieties of jatropha, a plant that can grow in wastelands across India, to meet the severe raw material shortage for the green fuel industry.
Senior officials of the National Oilseeds and Development Board (NOVOD) said 76 institutions across the country were engaged in this research. A high-yielding variety should be available in the next two to three years. Forty million hectares of land has been identified by the government for cultivation once these high-yielding varieties are made available.
But the issues are far more complex. For now, the responsibility of developing green fuels for the future rests with several ministries. The Ministry of New and Renewable Energy (MNRE) released a biofuel policy last year. Now, the ministries of petroleum, rural development and agriculture are looking into several implementation issues.
The Ministry of Rural Development has already set up a national mission on biodiesel, while the Ministry of Petroleum is addressing the more complex issues of distribution and pricing. The Ministry of Agriculture, along with the Department of Biotechnology, is looking at new research in these areas.
So much in the planning process is not quite helping business. President of the Biodiesel Association of India, Sandeep Chaturvedi, said: