S C Gupta GM (Biofuels) Indian Oil Corporation Limited

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S C GuptaGM (Biofuels)Indian Oil Corporation
Limited

• Jatropha Plantation on Revenue Wastelands

Indian Oil Corporation Limited
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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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Initial Developments in Biodiesel

• 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
• MoPNG 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

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• Biodiesel Initiatives of IndianOil

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Development of Structure

• Biofuels Business Development group created
• Business modeling for Biodiesel activities
  finalized
• Corporations 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

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IndianOil Biofuels Projects
Chhattisgarh

• 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

Uttar Pradesh

• 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

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Project activities- Chhattisgarh
Nursery Site, Raipur
Pit digging, Bilaspur
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ICBL Plantations in Chhattisgarh
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IndianOil Biofuels Projects
Madhya Pradesh- Pilot Project
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 )
1 year old Jatropha plants in Jhabua
Plantation completed on about 300 hectares of
land in Jhabua
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System Standardization

• 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

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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 camps
Medical 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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Major Issues Concerns

• 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
•  

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Major Issues Concerns

• 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

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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
  RD expense / CSR activity
• Waste Land Allotment Policy Integrated
  (revenue cum forest) wasteland allotment policy

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To Conclude

• Massive mobilization of resources is essential
  for meeting NPB 2017 target
• Promotion of Biofuels has multiple
  advantagesEnergy security Sustainable rural
  employment / development Environment benefits
  etc
• Commercialization will require long term
  commitments and government support
• Extensive RD for - yield improvement new
  feedstocks new technologies etc
• With govt. support and coordination with all
  players in RD, agriculture, RD, forest,
  logistics, processing and marketing Biofuels can
  achieve its goal

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Thank You