Malaysian Palm Oil Council India

BIODESEL

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Corporate Strategy Suggested for Big Indian Companies

Many Big Companies have their grass root plants in rural areas. They have a big fleet of Vehicles, and they consume large quantities of Diesel Oil for their Diesel Engine Vehicles and Diesel (Electric) Generating Sets. These companies also have many activities for Rural Development. They can combine Rural Development Activity to get Oil (and BioDiesel) for their captive use. Here is a suggestion.

1. They should Start buying seeds of Karanj, Mahua, Sal and Neem from local people around their unit and from Adivasis staying in Forests. Local NGOs and Self Help Groups should be encouraged for the same. Since seeds of these plants are not used much for plantation, the prices of these seeds are reasonable. If these seeds are bought at factory gate for Rs. 10 per kilogram, oil extracted from it can cost Rs. 30 per liter (considering sale price of seed cake).

2. This will develop a supply chain. This then can be expanded to district level and then to state level.

3. The seed cake is more valuable than oil. BioGas can be produced from it, and it can be used as fuel in factory. Almost 50% of the weight of seed cake is converted into BioGas, which is a clean fuel.

4. The fermented seed cake can be sold to local people for convertion into BioFertilizer. BioFertilizers will be most sought after soil nutrients in future.

5. There are many BioDiesel producers in the country, which are facing shortage of raw material. These can convert the Company's oil into BioDiesel, and give BioDiesel back to the company, on contract basis. Conversion cost for a small scale BioDiesel plant is around Rs. 7 per liter. Hence it will be cheaper than Petroleum Diesel.

6. Since it is used captively by the company, it need not be sold at unremunerative price to oil companies.

7. This will start like a movement (similar to Milk revolution by Amul and NDDB) and will spread rapidly.

8. It is a win-win situation for all.

9. If the company has to offer a price that is more than Rs. 10 per kilogram, the extra expences incurred will not exceed even 1% of the entire fuel bill of the company. Some companies have shown interest in this model for further action. Your views and suggestion on this model are appreciated.

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