12th February, 2003
Ministry of Railways  


INDIAN RAILWAYS TO USE BIO-DIESEL FUEL

SIGNS MOU WITH IOC FOR PRODUCTION OF BIO-DIESEL


Indian Railways has signed a Memorandum of Understanding (MOU) with the Indian Oil Corporation (IOC) for an important pilot project for production of bio-diesel for railways. Under the agreement signed here today in the presence of Railway Minister Shri Nitish Kumar, Petroleum & Natural Gas Minister Shri Ram Naik and the Ministers of state from both the Ministries, Indian Railways will offer 500 hectares of compact land on lease to IOC for plantation of Jatropha Curcas (Ratan Jyoth) which is likely to yield 500-800 metric tones of bio-diesel in two to three years time.

Speaking on the occasion the Railway Minister Shri Nitish Kumar lauded the joint initiative of Indian Railways and IOC as a major step towards eco-friendly and cost effective bio-fuel for railways. He said that it would be a mile-stone as the plantation of such trees would prevent cattle astraying on railway tracks thus improving safety. He further added that 18000 hectares of arid land that railways had could well be utilized for plantation of Jatropha Curcas. The Minister of Petroleum & Natural Gas Shri Ram Naik called it a second historic step in the petroleum sector, the first being commencement of supply of ethenol blended petrol introduced from January this year in the first phase. The Minister hoped that other sectors like agriculture and rural development would largely benefit out of this. He further said that initially 5% and later 10-20% of bio-diesel would be used by railways as the plantation of Jatrpopha Carcus progressed. The Minister of state for Rural Develoment Shri Annasahib Patil said that the bio-diesel found expedient by more than twenty two countries, would ultimately make India self- reliant, reduce pollution and generate employment opportunities in rural areas.

Railways have already tested the bio-diesel fuel supplied by IOC at the RDSO lab at Lucknow and the trial run on the diesel locomotives hauling Shatadbi Express between New Delhi and Amritsar has also been found successful. This milestone joint venture between railways and IOC will not only pave the way for fuel self-sufficiency but environmental protection also.

Plantation of Jatropha on 500 hectares of land spread across Rajkot, Bhavnagar and Jaipur will give about 800 tones of bio-diesel per year beginning the third year of plantation. IOC will take up plantation, collection of seed, extraction, trans-esterification, blending and testing by out sourcing some or all of the activities. Storage/dispensing facilities for the blended product will be arranged at the identified diesel loco shed of railways.

As of now, the estimated price of bio-diesel is Rs.11-12 per litre but the final price of the fuel to be produced under this innovative project will be decided through negotiation between railways and IOC.