India's Tinna Oils to set up biodiesel plant

11 September 2006 09:34  [Source: ICIS news]

SINGAPORE (ICIS news)--Tinna Oils & Chemicals is investing $2.5m to set up a 50 tonnes/day (16,500 tonnes/year) biodiesel plant in Latur, Maharastra, India, the joint venture between New Delhi-based Tinna Group and US-based Archer Daniels Midland said on Monday.

The "continuous process" plant is in the final stage of construction and will be commissioned in October, a company spokesman said, adding that it will start production by mid-October.

This will be the "first dedicated" biodiesel plant in India, he said, although there are few other plants which have been converted out of defunct chemical plants, while others are still in the initial stages. 

A lack of government support has impeded the growth of biodiesel in India, with no policy for the use or blend of biodiesel, or any incentives or tax exemptions as yet announced for the industry.

Tinna is going ahead with its plan, despite the fact that the Ministry of Petroleum and Natural Gas had announced a "highly unrealistic" purchase price of Rs25/litre ($0.54/litre) inclusive of all levies, the spokesman said. 

Tinna Oil has two edible oil manufacturing plants in India. One is a 1,000 tonnes/day crush plant at Latur, Maharashtra State while the other is a 1,000 tonnes/day crush plant in Dharwad, Karnataka State.

By: Jeanne Lim
+65 6780 4359

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