Nandan Biomatrix Ltd, an integrated R&D company for neutraceuticals and medicinal plants, has signed agreements with Bharat Petroleum Corporation Ltd (BPCL) and Shapoorji and Pallonji Ltd to form a JV company for producing biodiesel from jatropha in Uttar Pradesh. Together, they have formed a company, registered it in Lucknow and is awaiting the UP government approval, for commencing biodiesel production in a big way. The total cost of the project is estimated to be about Rs 2,000 crore.
According to informed sources, the newly-formed company proposes to partner with other state governments as well for jatropha plantation. ?We are awaiting the state cabinet approval of UP to initiate the project,? sources in the know said. ?We are also talking to Rajasthan and Orissa governments for jatropha cultivation to be taken up in phased manner and also for trans-esterification processes,? sources added.
About 10 lakh acre are expected to be converted for jatropha plantation which is expected to yield about 2.5 million tonne of oil. With the agreement in place, it is learnt that BPCL is building up the feed stock along with a buyback arrangement to be used for blending purposes.
While Nandan proposes to set up its own R&D centre in Kanpur, clonal stations for multi-propagation methods besides providing training to the farmers; BPCL would be working towards storage and transportation from the fields to the collection centres apart from R&D; and Shapoorji has proposed to build a trans-esterificatiion unit in Kanpur.