from the South
Southern Biofe Bio Fuels Plans Biodiesel Project In Hyderabad
Our Corporate Bureau
March 15 Southern Biofe Bio Fuels Ltd (SBBFPL), a diversified
group company of Southern Online, is planning to start a biodiesel
project in Hyderabad with an investment of Rs 15 crore. The
company is planning to commence commercial production of biodiesel
by mid of this year with a capacity of 30 tonnes per day which
is expected to become the first plant in the country producing
fuel from non-edible vegetable oils like karanja, jatropha,
palm sludge, non-edible rice bran oil, etc.
The company has already received a letter of
assurance for buying the produced biodiesel from the rural development
ministry, which is the nodal agency to promote biodiesel programme
for encouraging the usage of biodiesel in the country, Mr N
Satish Kumar, director of SBBFPL said. With the thrust given
by the Centre on eco-friendly fuels, biodiesel can be used as
replacement-cum-blend for petro-diesel in order to reduce pollution
or as an alternative fuel, he said.
The letter from the rural development ministry
has assured the company for bringing customers on permanent
basis like the IndianOil Corporation, Indian Railways, etc following
the terms and conditions made by bulk purchasers. The total
investment for this project is estimated at about Rs 15 crore.
About Rs 6 crore is being mopped up through internal accruals
and the remaining Rs 9 crore is yet to be mobilised either through
debt or equity, he said.
The project appraisals are being done by the
ministry of environment, forests, science and technology and
Andhra Pradesh Pollution Control Board, he said.
``We have also approached the International
Finance Corporation (IFC) for financial assistance besides other
VCs from Germany. The project details are being appraised by
the German Technical Cooperation, (GTZ) for obtaining the funds,''
according to Mr N Satish Kumar.
technology for converting crude oils into diesel will be provided
by Chemical Construction India Ltd, New Delhi which has technical
collaboration with LURGI of Germany, a leader in biotechnology,