Bharat Renewable Energy plans to produce bio-diesel

Mumbai: Bharat Renewable Energy, the joint venture promoted by Bharat Petroleum Corporation (BPCL), would invest around Rs 2,200 crore to produce bio-diesel from jatropha plants.

In the first phase of the project, a million acres of wasteland in Uttar Pradesh would be brought under jatropha plantation, said Mr Ashok Sinha, Chairman and Managing Director of BPCL.

Talking to reporters after the company’s annual general meeting, Mr Sinha said that the project may start producing diesel in the next three to four years.

Other partners in the joint venture are private sector Nandan Biomatrix Ltd and Shapoorji Pallonji Co Ltd. The Uttar Pradesh Government would be supporting the project. The cost of saplings and planting would be covered under the National Rural Employment Guarantee Scheme.

BPCL is also exploring the possibility of initiating similar projects in other States, Mr Sinha said. Excess land at the existing supply locations and LPG plants have been identified and the process of planting of jatropha trees has begun, he said. These plantations would bear fruit in three years.

He said the company was also focusing on solar power and a one-MW capacity grid connected solar farm was being set up in Punjab. The objective is to generate electricity and make it available to the State grid. The project is at pilot stage and the company has spent about Rs 25 crore.

Mr Sinha said that the Bina refinery will be on stream by December 2009 and will help the company meet its requirements in central and northern India.

The company has spent Rs 9,300 crore for the Bina project, completing 75 per cent of the construction.

The estimated capital outlay for the project is Rs 10,378 crore, he said.

Mr Sinha said that the company has planned a capex of around Rs 6,700 crore over the next three years.

The capital expenditure for the next two years would be Rs 2,700 crore. This could go up to Rs 4,000 crore by 2010, he said.