The Hindu : Tamil Nadu News : Large-scale jatropha cultivation yet to gain momentum

Online edition of India's National Newspaper
Wednesday, Jun 29, 2005

Tamil Nadu

Tamil Nadu

Large-scale jatropha cultivation yet to gain momentum

N. Ravi Kumar

Lack of policy initiatives, subsidy and high investment hamper its use Lack of policy initiatives, subsidy and need for high investments are factors

AN EXCEPTION: Southern Railway's Loco Works in Perambur is perhaps the only organisation using jatropha in fairly large quantities. — Photo: By special arrangement

CHENNAI: Absence of attractive policy initiatives, the need for high investments and lack of subsidy schemes are hampering the use of jatropha as a blend in diesel used by automobiles.

Although initiatives to promote the use of the plant oil to fuel motor vehicles have been going on for years, large-scale commercial cultivation of jatropha is yet to gain momentum.

The saving grace for Tamil Nadu, as also for some other parts of the country, is the growing interest of farmers and like-minded organisations to take up jatropha cultivation. The main reason for this is the potential of jatropha to become a mainstay and fully substitute diesel. The biofuel programme promises to generate employment opportunities, reduce noxious vehicular emissions and bring down the oil import bill.

But many of those planning to get into the jatropha cultivation and oil production have little understanding of the issues, say experts.

Noting that the use of jatropha as a blend in diesel can to a large extent protect the country from the effect of crude oil spike, N.S.Venkataraman, Director, Nandini Consultancy, says "the biofuel project still remains largely in the discussion stage."

The concepts and strategies should be clearly defined, understood and worked out. The key issues include ensuring attractive returns for farmers, disposing the large quantity of glycerine that would be produced as a by-product and finding use for cakes that would remain after the transesterification process.

Therefore, the Centre should not shy away from subsiding biofuel. Otherwise there will not be many takers owing to the price of the plant oil, he says.

Constraints

The inadequate push from the governments is causing discomfort to organisations that have got into cultivation. Says R. Kanakaraj, Managing Director of Ahimsa, a non-governmental organisation that initiated contract farming of jatropha on 34,000 acres in the State, "banks are not willing to extend finance for the programme and there is little support from the State Government." Noting that it takes three years to get returns from the project, he says the farmers are paid Rs.8 a kg by the NGO, which in turn is paid a rupee more by the Southern Railway. Southern Railway's Loco Works in Perambur is perhaps the only organisation using jatropha in fairly large quantities. According to M. Jayasingh, Chief Mechanical Engineer (Planning),who previously served as Chief Workshop Manager of the Perambur Loco Works, a plant that can produce one tonne biofuel a day, is operating far below the capacity due to a shortfall in availability of jatropha seeds.

Two passenger trains and three diesel shuttle passenger services in the State are run on five per cent jatropha blended diesel, 20 road vehicles of the department on 20 per cent blend and a Tata Sumo on 100 per cent biofuel. About 1,000 litres of used cooking oil supplied free of cost by star hotels is also used, he says, adding there are some captive jatropha cultivation done by Perambur Loco Works.

Subsidy and fiscal incentives are essential, at least in the first few years, for the success of programme, says D. Aristotle, General Manager (projects) of D1 Mohan Oils Limited, a company, which with the support of the State Bank of India, is all set to initiate contract farming on 40,000 hectares in the State.

The company will also set up a refinery to produce 8,000 tonnes of the plant oil per annum near Chennai by the year-end.

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