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BiodieselinIndia

SITEMAP
BIODIESEL
PLANTS
Wesupply
Designsand
Drawingsfor
Settingup
BiodieselPlants
andRawMaterial
Vegetableoilfor
manufactureof
BioDiesel.

11thyearofIndianBioFuelAwarenessInitiative

SatishLele
lelebiodzl@gmail.com

AnothertendertobuyBioDiesel,butnosupplyofUsedCookingoil,
FryingOil,Tallow,etc.asRawMaterial.Thesearenotavailablein
Indiaandcannotbeimported.

BiodieselinIndia

India is a dieseldeficit nation and demand has far outstriped supply. India's
dieselproductionwillnotbeabletokeeppacewiththerapidlygrowingdemand.
Government'spricingpolicynowallowsoilcompaniestodecideprices.Dieselis
notmuchcheaperthanpetrolanymore.Dieseldemandinthecountryisgrowing
BioDiesel
atanannualrateof8%.AtthisrateIndiawillneedabrandnew9MillionTons
Mission
per year refinery every year. The automobiles industry has estimated that the
IndianScene
Marketing
shareofdieselvehicals,inoverallvehiclesaleshascrossedthe40%mark.The
Storage/Handling priceoffuelsisnowgoingtobeinlinewithpriceofcrudeoil.HencethePetrol
TaxCredit
and Diesel prices are now in line with international price levels, which makes
biofueleconomicallyattractive.

Standard
FutureScene
ProjectReportsof
BioDieselPlants
Process
DesignDrawings

Pongamia
Pinnata
Jatropha
Consultancy
VegOils
Algae
Herbal
Product
Climate
Adaptation
ContactMe
MyResume

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IndianBioFuelPolicywasfinallyannouncedon23rdDec2009.Itgivesarough
guideline,whichwasactuallyproposedmanyyearsback.Mainstumblingblocks
arestillnotresolved.TherearenoFiguresorFinancialcommitments.Someof
thepointsare
1.The Minimum PurchasePrice(MPP) forbiodiesel by theOil Marketing
Companies(OMCs)willbelinkedtotheprevailingretaildieselprice.
2.Financial incentives, including subsidies and grants, may be considered
upon merit for new and second generation feed stocks, advanced
technologiesandconversionprocesses,andproductionunitsbasedonnew
andsecondgenerationfeedstocks.
3.Bioethanolalreadyenjoysconcessionalexcisedutyof16%andbiodiesel
is exempted from excise duty. No other Central taxes and duties are
proposedtobeleviedonbiodieselandbioethanol.
4.ImportofFreeFattyAcid(FFA)oilswillnotbepermittedforproduction
ofbiofuels.
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Toseetheoldpolicydocument.

NewDieselCarsareHittingtheRoadEveryday.
India'sbiodieselprocessingcapacityisestimatedat600,000tonsperyear.
The government owned Oil Marketing companies have now floated a
tenderagaintobuy840millionlitersofBioDiesel.Howevertherearefew
interestedsuppliers.Theyprefertoexport,ratherthansellinginIndia.
BioDiesel in India was virtually a nonstarter in past. There are many
reasonsforthat.TheMainReasonsarenonavailabilityofusedvegetable
oil, very strict Indian Biodiesel Standard (IS 15607 : 2005) and
Government'sPolicies.CurrentTenderforBioDieselislikelytoFailagain
dueto
1.NonAvailabilityofOil
InIndiaEdibleoilsareinshortsupply,andcountryhastoimportup
to40%ofitsrequirements(ItisnowpartlyoffsetbyBumperCrop
ofSoy).HencepricesofedibleoilsarehigherthanthatofPetroleum
Diesel.Duetothis,thesearenotviableandhenceuseofnonedible
oilswassuggestedforBioDieselmanufacture.
Even though the consumption of Edible oils in India is high, the
availabilityofusedcookingoilisverysmallasitisusedtilltheend.
IndianCultureusesvegetableoillampsforlightinginhomesandin
temples (like candles in other cultures). When prices of edible oil
shot up, some people turned to a bit cheaper nonedible oils. The
requirement of this sector is more than 15 million tons
(BioKerosine). Since non edible oil seeds can be collected and
crushed,usinghandoperatedexpellers,inasmallscaleinfarflung
villages,theuseofnonedibleoilsforlampsispickingupveryfast.
This is the best way of use for millions of Rural Indians. This is
deprivingBioDieselindustryitssupplyofoil.
All over the world Edible oils are used for manufacture of
BioDiesel. These are Rape seed in Europe, Soy in Americas and
Palm in South East Asia. Rape seed and soy are grown for its de
oiled meal as cattle feed and oil is not that important. Hence these
were in excess, and had to be disposed off at lower prices. Hence
initiallyitwasaviablerawmaterialforBioDieselmanufactureanda
lot of manufacturing units came up in US and Europe, based on
theseoils.Nowexcessoiliscommited,andfreshsourcesneedtobe
developed.
MostoftheedibleoilsusedcurrentlyformanufactureofBioDiesel,
are Stable (do not get rancid). These do not decompose much on
storage. Hence these are preferred for TransEsterification Process.
NonEdible oils are not that stable, and need a lot of pretreatment
addingtothecostofmanufactureofBioDiesel.Theseoilswith50%
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freefattyacidscanbeusedaslampoil.
The use of lamp oil is increasing rapidly in India, as there is no
electricalpowersupplyfor10to14hoursadayinruralareas.Soon
peoplewillfaceshortageoftheseoilsforlightingpurposes.
CottageWashingsoapindustrycanusevegetableoilswithhighfree
fatty acid contents (Acid Oils). Since prices of edible oils have
doubled, many soap manufacturers in unorganized sector are using
theseAcidOilsastheseareabitcheaper.
There are billions of other trees (Karanj, Mahua, Neem), all over
India, with oil bearing seeds. Traditionally Karanj (Pongamia
Pinatta)isplantedalongtheHighways,RailwaysandCanals.Petrol
Pumpownersalongthehighways,shouldbuytheseoils,packthem
in1literbottlesandsellasfueladditive.Neem(AzadirachtaIndica)
is planted everywhere for purification of air. Mahua (Madhuca
Indica)andSal(Shorearobusta)growswildlyinForests.Collection
and Processing mechanism for these seeds is not yet developed.
Hence most of these seeds lie on the ground (and ultimately get
convertedintoBioFertilizer).
2.Government'sPolicies
Government of India started BioFuel mission in 2003, but it
announced BioFuel Policy on 11th September 2008. The Union
Cabinet in its meeting gave its approval for the National Policy on
Biofuel prepared by the Ministry of New and Renewable Energy,
andalsoapprovedforsettingupofanempoweredNationalBiofuel
Coordination Committee, headed by then Prime Minister of India
andaBiofuelSteeringCommitteeheadedbyCabinetSecretary.
Ministry of New and Renewable Energy has been given the
responsibility for the National Policy on Biofuels and overall co
ordination by Prime Minister under the Allocation of Business
Rules. A proposal on National Policy on Biofuels & its
Implementation was prepared after wide scale consultations and
interMinisterialdeliberations.ThedraftPolicywasconsideredbya
Group of Ministers (GoM) under the Chairmanship of Shri Sharad
Pawar, hen Union Minister of Agriculture, Food & Public
Distribution. After considering the suggestions of Planning
Commission and other Members, the Group of Ministers
recommendedtheNationalBiofuelPolicytotheCabinet.
SalientfeaturesoftheNationalBiofuelPolicyareasunder:
1.An indicative target of 20% by 2017 for the blending of
biofuels (bioethanol and biodiesel) was proposed. (Even 1%
isnotpossible)
2.Biodiesel production will be taken up from nonedible oil
seeds grown in waste / degraded / marginal lands. (This has
Failed)
3.The focus would be on indigenous production of biodiesel
feedstockandimportofFreeFattyAcid(FFA)ofoils,suchas
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palmetc.wouldnotbepermitted.(Duetothis,rawmaterialis
notavailable)
4.Biodiesel plantations on community / Government / forest
waste lands would be encouraged while plantation in fertile
irrigatedlandswouldnotbeencouraged.(ThishasFailed)
5.MinimumSupportPrice(MSP)withtheprovisionofperiodic
revision for biodiesel oil seeds would be announced to
provide fair price to the growers. The details about the MSP
mechanism, enshrined in the National Biofuel Policy, would
be worked out carefully subsequently and considered by the
Biofuel Steering Committee. (This has Failed due to non
remunerativepriceofferedbytheoilmarketingcompanies)
6.Minimum Purchase Price (MPP) for the purchase of bio
ethanol by the Oil Marketing Companies (OMCs) would be
basedontheactualcostofproductionandimportpriceofbio
ethanol.Incaseofbiodiesel,theMPPshouldbelinkedtothe
prevailingretaildieselprice.(Thiswasnotdone)
7.TheNationalBiofuelPolicyenvisagesthatbiofuels,namely,
biodiesel and bioethanol may be brought under the ambit of
Declared Goods by the Government to ensure unrestricted
movementofbiofuelswithinandoutsidetheStates.Itisalso
statedinthePolicythatnotaxesanddutiesshouldbelevied
onbiodiesel.
Oil companies had declared their own BioDiesel Purchase Policy.
These companies offered a price of Rupees 34.00 per liter of
BioDiesel,whichwaslessthanthemanufacturingcostofBioDiesel.
Large patches of land are required for plantation of Jatropha.
GovernmentholdslargetractsoflandasForestLandsandRevenue
lands. In some states, like Chattisgarh, these are leased to State
ownedOilcompanylikeIOC.(ItwasonlyforMediaHeadlines)
AbighypewascreatedbyUPJatrophamissionofUttarPradesh.It
was a Joint venture of BPCL, Nandan Biomatrics and Shapoorji
Pallonji and was to be supported by UP Government. They were
going to tieup with every Panchayat (Local Body) of selected
DistrictstoplantJatrophaonPanchayatlands.Jatrophaseedswere
to be bought back by BPCL in long run. Operation of this mission
startedveryslowduetoGovernment's(Politician's)andPanchayat's
(Beurocrat's)involvementandbecauseitwasimplementedthrough
National Rural Employment Guarantee Scheme. IOC was also
planning to enter in UP as well as some others. Individual farmers
were ready to plant Jatropha in their useless and waste lands and
wantbuybackagreementlikecontractfarmingwithgoodprice(But
price offered were generally half the producion costs). Not much
happened after initial euphoria. These companies now have
plantationsinNorthAfricanCountries.BundelkhandareaofUP,has
lotofwasteland(600,000700,000hectares)whicharebestsuited
for Jatropha and on the other hand Districts of Eastern UP have
saline and waste lands which are also suitable for plantation, but
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therenowill.Wherethereisnowill,thereisnoway.
Mission

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Marketing

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