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S C Gupta GM (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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Indian Oil Corporation Limited 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 9 th 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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Indian Oil Corporation Limited Biodiesel Initiatives of IndianOil
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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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Indian Oil Corporation Limited 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
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Indian Oil Corporation Limited Project activities- Chhattisgarh Nursery Site, Raipur Pit digging, Bilaspur
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Indian Oil Corporation Limited ICBL Plantations in Chhattisgarh
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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
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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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Indian Oil Corporation Limited 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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Indian Oil Corporation Limited Major Issues & Concerns Land Availability Certified High Yielding Varieties Plant Health Availability of labor Irrigation Costs Logistics Harvesting
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Indian Oil Corporation Limited 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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Indian Oil Corporation Limited 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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Indian Oil Corporation Limited 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
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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
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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
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Indian Oil Corporation Limited Thank You
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