INDIA: Auto majors gear up with technology for bio-diesel vehicles

National policy on bio-fuel estimates: 10 per cent replacement of petro-products will save Rs 60,000 cr forex by 2012
by SUMANT BANERJI

The Jatropha plantation policy may be taking sometime in formulation but the auto sector which is expected to be the major consumer of the oil is already revving up. Auto majors like Tata, Mahindra and Mahindra and Diamler Chrysler have already perfected the technology for vehicles to run on bio-diesel and await government to finalise its policies.

This week, M&M showcased a bio-diesel version of its popular Scorpio that can run on blends (5-20 per cent with diesel) and also completely on bio-diesel. Daimler Chrysler is in the last stage of its bio-diesel jatropha project which looks into the technical feasibility of the fuel. The company has tested two C-class Mercedes Benz over 6,000 km with satisfactory results. Similarly Tata has 43 buses plying in Pune that run on bio-diesel blend.

While the vehicles are there for the taking, non-availability of fuel and sluggishness on part of the Ministry of Non-renewable Energy is delaying vehicles from hitting the market.

“The jatropha policy is likely to be announced soon and we will ensure availability of the fuel across the country,” said Petroleum Minister Deora adding that his ministry has written to Finance Minister P. Chidambaram seeking incentives for the fuel so that the price is attractive. “We are trying to persuade state governments to resist from applying high rates of sales tax so that bio-diesel is available at Rs 21.50 a litre,” he added.

But more issues need to be addressed if bio-diesel blend is to make a debut soon. “Government has to decide on the specification of the bio-diesel and norms for blending. We have requested it should be started at 5 per cent, and eventually increased. Further, pricing has to be handled tactfully so that adulteration for or against bio-diesel is checked,” said Society for Indian Automobile Manufacturers (SIAM) director general Dilip Chenoy.

Apart from being a cleaner fuel, bio-diesel comes from a renewable source and will reduce relience on oil imports. The national policy on bio-fuel estimates say 10 per cent replacement of petro-products will save forex of Rs 60,000 crore by 2012. All this at a nominal cost, incurred to make an existing vehicle adaptable to the fuel.

“The cost of converting an existing CRDe Scorpio into bio-diesel is not more than Rs 6,000. We’ve developed the vehicle and are waiting for government to make the fuel available,” said M&M president (farm equipment sector) Anjani Kumar Choudhari.

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