`Use imports to meet bio-diesel demand`- Business Standard, New Delhi, 8^th December, 2006

The recently formed Bio-diesel Association of India wants the government to allow, at concessional import duty, the import of non-edible and industrial oils that can be used to produce bio-diesel. “Jatropha will only be available in quantities large enough to be used for biodiesel production in 5-7 years. We want the government to allow import of other forms of feedstock till then,” said Sandeep Chaturvedi, the association’s president, and director of Gujarat Oleo Chemicals.

He said the government must formulate policies to promote production of the alternative fuel, for which funds should be allocated under the Eleventh Five-Year Plan. “Countries like Finland and Germany give many tax sops to producers of bio-diesel. There are no such incentives in India,” Chaturvedi added.

The association wants duty on import of non-edible oil to be similar to that of crude oil, which is 5 per cent. Non-edible oil imports attract 15 per cent Customs duty and 16 per cent countervailing duty. The association has made several representations to the government seeking a policy on bio-diesel.

“The 11 million hectares of wasteland in India could be used to usher in large scale use of biodiesel,” said S. K. Mondal, vice-president of the association and director of Emami Biotech Pvt Ltd. Pricing of bio-diesel continues to be a bone of contention. The government has fixed Rs.26.50 per litre as the ex-distillery price of bio-diesel. The industry, however, said this was the selling price of jatropha itself. “An ex-distillery price of Rs.33 a litre will be viable,” said Chaturvedi.

The total investment in bio-diesel will be around Rs.50, 000 crore over a 3-year period. This includes Rs.28, 857 crore in planting of Jatropha and Rs.18, 000 in processing the feedstock.