S C GuptaGM (Biofuels)

Indian Oil Corporation Limited

Jatropha Plantation on Revenue Wastelands

Indian Oil Corporation Limited

Indian Oil Corporation Limited

Contents

Initial Developments in Biodiesel Biodiesel Initiatives of IndianOil

Development of Structure Projects

Chhattisgarh Uttar Pradesh Madhya Pradesh

Systems: Documentation & Technology

Major issues & concerns Support required Conclusion

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Planning Commission report (2003) suggested Jatropha curcas as a potential feedstock for Biodiesel production

A National Biodiesel Mission launched by Planning Commission to meet the 5% biodiesel requirement of India

MoPN&G declared Biodiesel Purchase Policy on 9th Oct, 05 w.e.f . 1.1. 06

It laid emphasis on Standard Quality (as per BIS Spec); Uniform Price (Rs. 26.50 / Litre); Setting up of 20 Purchase Centres by Oil PSUs; Assured Market to Farmers & Entrepreneurs

Utilization of wasteland for feedstock generation

Initial Developments in Biodiesel

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Biodiesel Initiatives of IndianOil

Indian Oil Corporation Limited

Biofuels Business Development group created

Business modeling for Biodiesel activities finalized

Corporation’s ‘Article of Association’ suitably amended for

agricultural activities

A pilot project in Madhya Pradesh (Jhabua district) launched

A JV company formed in Chhattisgarh with CREDA for development of feedstock in the state

Development of Structure

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IndianOil Biofuels Projects

Objective: Production of 30 MMTPA of Biodiesel

(Model : Captive Jatropha Plantation on 30,000 ha of revenue wasteland)

Joint Venture Company with Chhattisgarh Renewable Energy Development Authority (CREDA) with 74% stake to IndianOil – IndianOil CREDA Biofuels Limited

Plantation completed on about 4200 hectares in Chattisgarh

Objective: Production of 35 MMTPA of Biodiesel

(Model : Jatropha Plantation on 50,000 ha of panchayat wasteland )

IndianOil Ruchi Biofuels LLP incorporated this year

Plantation commenced in Jhansi & Lalitpur (2010)

Major project funding from MNREGS through Jeevan Jyoti Yojana (JJY) of GoUP

Uttar Pradesh

Chhattisgarh

Indian Oil Corporation Limited

Project activities- Chhattisgarh

Nursery Site, Raipur

Pit digging, Bilaspur

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ICBL Plantations in Chhattisgarh

Indian Oil Corporation Limited

IndianOil Biofuels Projects

Objective: To assess possibility of revenue land based commercial Biodiesel unit and develop benchmarks for plantation costs and output

(Model: Captive plantation on 2000 ha of revenue wasteland )

Plantation completed on about 300 hectares of land in Jhabua

1 year old Jatropha plants in Jhabua

Madhya Pradesh- Pilot Project

Indian Oil Corporation Limited

Jatropha – Agri Techniques Manual Manual designed to standardize Jatropha plantation and best practices

Energy crop Plantation Documentation Module: Standardization of execution, monitoring and data management of plantation activities

Technology: GPS GPS employed for area calculation and mapping Measurement and verification of land area against revenue records

System Standardization

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CSR Activity

5 Cattle health checkup camps held in Jhabua

18 villages covered in 2 medical camps organized in Newra & Bhamu in district Bilaspur, Chhattisgarh

Cattle Check up campsMedical Camps

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Major Issues & Concerns Land Availability Certified High Yielding Varieties Plant Health Availability of labor Irrigation Costs Logistics Harvesting

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Major Issues & Concerns

a. Land Available revenue wasteland is less than reported

Significant portions encroached, under forest cover, diverted etc. Many plots unfit due to poor soil depth, steep slope etc To meet estimated 5% blending requirement by 2017, approx. 3 million ha

will have to be brought under cultivation

Formation of compact clusters difficult due to small & scattered plots

b. Uncertainty in Yield Nation wide survey of existing plantations in six climatic zones: seed yield

varying from 350 to 1700 gm /plant Non availability of certified planting materials (seeds/saplings)

c. Plant Health Jatropha, contrary to earlier reports of hardy nature, is prone to disease

and infestations. Remedial actions add to the plantation costs

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d. Availability of labour Getting labour in adequate nos. in the plantation season is difficult since it

coincides with that of sustenance food crops.

e. Rainfall/irrigation: Availability of water in marginal lands is limited and expensive

f. Costs Actual cost of plantation is higher than envisaged Major Contributors to increase in costs

Irrigation Costs of Agri-inputs Labour rate & No of Mandays

 

Major Issues & Concerns

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g. Logistics: High logistics cost due to small & scattered plots - non formation of

clusters

h. Harvesting: The staggered ripening pattern of Jatropha fruits also adds to the

harvesting costs Diversion of produce after harvesting could occur & initiator may

not get its due

Major Issues & Concerns

Indian Oil Corporation Limited

Support Required

High yielding certified seed / planting material

Dedicated Government Financial Support Allotment of funds to promote Energy Crop planations  Nil VAT/ST on “Biodiesel Portion” of blended HSD. Direct investments by Corporates to be treated as R&D expense / CSR

activity

Waste Land Allotment Policy : Integrated (revenue cum forest) wasteland allotment policy

Indian Oil Corporation Limited

To Conclude

Massive mobilization of resources is essential for meeting NPB 2017 target

Promotion of Biofuels has multiple advantages–Energy security; Sustainable rural employment / development; Environment benefits etc

Commercialization will require long term commitments and government support

Extensive R&D for - yield improvement; new feedstocks ; new technologies etc

With govt. support and coordination with all players in R&D, agriculture, RD, forest, logistics, processing and marketing; Biofuels

can achieve its goal

Indian Oil Corporation Limited

Thank You