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Rediff News  All News  » Business » Now, buy bio-diesel at Rs 38.90/ltr

Now, buy bio-diesel at Rs 38.90/ltr

July 02, 2008 11:49 IST
At a time when soaring fuel prices are burning holes in pockets of consumers, a Gujarat-based company has come up with cheaper, environment-friendly fuel alternative.

Aditya Aromedic and Bio Energy Pvt Ltd has recently started commercial production of bio-diesel from Jatropha. The good news is that bio-diesel marketed by the company is cheaper than the fossil diesel sold by oil marketing companies in the country.

Registered in 2005, Aditya Aromedic started commercial production of bio-diesel from Jatropha three months back.

The production capacity of its plant located in Navsari district of South Gujarat is 17,000 litres per day. In a quick span of three months, the company has developed a sizeable clientile in Ahmedabad, Nadiad, Vadodara, North Gujarat and other major cities such as Mumbai and Delhi, claim company sources.

"With the soaring crude prices, fossil fuels are going to get dearer in days to come. Bio-diesel produced by our company is sold at a price of Rs. 38.90 per litre in Navsari, while the prices of regular diesel in the same area is around Rs. 39.20 per litre," said Dharmendra Parekh, chairman, Aditya Aromedic and Bio Energy Pvt Ltd.

"Once the company scales up its production, the bio-diesel cost may come down," he added.  Having made an initial investment of Rs 5 crore (rs 50 million), Aditya Aromedic is now looking at a major expansion drive.

Apart from Navsari, the company already has bio-diesel depot near Mehsana in North Gujarat. Soon, the company plans to roll out bio-diesel pump, which would be the first bio-diesel pump in the country.

After successfully commissioning the commercial production of bio-diesel, the next step is to increase Jatropha plantation.

The company has entered into contract farming and nearly, 1,500 farmers, including 85 Below Poverty Line (BPL) families, are associated with the company, which has so far brough 300 hectares of land under Jatropha cultivation in Gujarat, Maharashtra and Rajasthan.

"We want to bring more farmers to augment jatropha cultivation," said Parekh.  Apart from bio-diesel production, Aditya Aromedic is also looking at bio-gas production by using jatropha waste.

"We intend to start production and refilling bio-gas, which could be used for power generation, he said. The success of the company has already caught the attention of some of the domestic and overseas companies.

Around six such companies have sought the help of South Gujarat-based company to undertake similar projects in and outside India. The company is hopeful of forging a tie-up with some of this players in near future.

Kalpesh Damor in Mumbai/Ahmedabad