Oil marketing companies (OMCs) in India are banking on bio-diesel, a blend of oil extracted from seeds of jatropha plant and diesel, for generation of cheaper and greener fuel.
State-owned IOCL, HPCL and BPCL have started jatropha plantation on a large scale on contract farming basis in states like Tamil Nadu, Chhattisgarh, Rajasthan, Haryana and Gujarat. They plan to source bio-diesel from contract farmers and other private players at Rs 25 a litre. Bio diesel would initially constitute 5% of the total diesel supply in the country, which would later go up to 20% in a phased manner.
(Cf. news of Sept. 21, 2005.)
Source: www.financialexpress.com Oct. 18, 2005.