Sunday, August 21, 2005

Bio-diesel - Another Small Step

Bio-diesel in India came one step closer to consumers, as Indian oil companies, IOC, HPCL and BPCL, have agreed to buy bio-diesel for blending with diesel. In fact, at a price of Rs 23 per liter, they have offered to buy "any quantity". The government however is in favor of a Rs 25 per liter to include an encouragement premium.

The 3 oilcos between them plan to set up 20 depots all over the country to collect bio-diesel. Each will have a laboratory facility to check for the quality of the bio-diesel being supplied. However the program to actually sell diesel mixed with the bio-fuel could take 4-5 years to launch on a commercial scale.

The growth of the bio-diesel industry in India is expected to benefit from the setting up of a Bio-Diesel Credit Bank in New Delhi, by the Petroleum Conservation Research Association (PCRA). The bank will provide, "provide all relevant information - right from people engaged in the cultivation of non-edible oil seeds to those engaged in collection and processing of bio-diesel and the desired quality of bio-diesel."