Indian railways seeks bids for biodiesel plants

02 September 2008 18:33  [Source: ICIS news]

NEW DELHI (ICIS news)--Indian Railways has invited bids from prospective project sponsors/promoters for setting up four biodiesel plants under a public-private partnership.

The initiative is being spearheaded by the Railway Ministry’s new entity, the Indian Railways Organization for Alternative Fuels (IROAF).

The initiative includes use of biodiesel in its fleet of diesel locomotives as a 5% blend with high speed diesel and cultivation of tree-borne oil (TBO) plants such as Jatropha curcas on vacant land along the railway tracks.

An IROAF official said each de-esterification plant would have capacity to produce 50 kilolitres/day of biodiesel. He said the total cost of the four plants should be about Indian Rupees(Rs)800m ($18m).

The location of the plants would be decided in consultation with the bidders. The companies that promote, own and operate plants would supply biodiesel to railways.

The official did not provide details of the public-private partnership format.

($1 = Rs44.15)

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By: Naresh Minocha
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