As part of its efforts to move towards less expensive bio-fuel, the Railways proposed to establish a one lakh litre capacity bio-diesel plant at the Southern Railway Loco Works at surburban Perambur in Chennai.

The plant, to be set up by Indian Railways Organisation For Alternative Fuels (IROAF) in association with the Southern Railway by the end of 2010, would extract oil from jatropha and pungum seeds and convert it into bio-diesel, Southern Railway Chief Mechanical Engineer V Carmelus said.

The bio-diesel produced at the plant would be meant exclusively for the usage of Southern Railway operations.

As per an MoU signed recently, Southern Railway would provide the space and infrastructure while the IROAF would handle the technical operations of the plant, he said.

IROAF would procure the requisite plant and machinery, estimated to cost around Rs.two crore and as per the MoU the plant would be commissioned within next 18 months.

The capacity of the plant would be one lakh liters per day and Southern Railway would obtain the bio seeds through contractual farming planned in Railway owned land. Besides diesel locomotives, the bio-diesel would be also utilised for road vehicles belonging to the railway administration, he said.