INDIA HAS JATROPHA AND KARANJ

India Plans New Biofuel Mission
Kushal Jeena, April 11, 2007 (UPI)

WHO
India’s federal planning commission on biofuels

WHAT
The development of biofuels from
jatropha and karanj, plentiful plants thought to be well-suited in hardiness and fuel yield. Karanj, an Indian native plant, may be the more likely choice.

WHEN
The project will be launched in two phases. 400,000 hectares of public land will be planted “shortly” in the demonstration phase. 11.2 million hectares of public and private land planting will follow.

WHERE
The states of Tamil Nadu and Maharashtra in southern India.

WHY
India’s present goal is to achieve a 5% mix of domestically produced biofuels into its fossil fuel consumption. This will require 2.6 million tons of biofuel production. The long term goal is 20%. To achieve the goals, the planning commission is evaluating the ways to best incentivize the planting of the crops and the development of refining facilities. Since Jatropha requires four years to come to maturity, farmers may be given a three-year subsidy. Refiners may be offered a 100% rebate on investment to convert their plants.

QUOTES
- "We have invested $80 million to set up a biodiesel plant with a crushing capacity of 3,000 liters per day," said S.V. Balasubramanium, chairman of Bannari Amman Group, a sugar major in the southern state of Tamil Nadu that has set up a biodiesel plant in Satyamangalam. "We also have plans to upgrade the capacity up to 10,000 liters per day. We would increase the production in a phased manner."
- "It should be encouraged in a way that it primarily involves outcome-related fiscal incentives for its economic production," said Kirit S. Parikh, chairman of the energy group of the Planning Commission.
- "If the oil companies take a lead and deal directly with farmers and their groups, the problem of pricing of seed and biodiesel would be internalized," said D.S. Rawat, an energy expert at the Associated Chambers of Commerce and Industry, an apex body of Indian industry.