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Bio-Diesel in Tamin Nadu

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Bio-Diesel in Tamil Nadu

PROJECT REPORT ON JATROPHA CURCAS

Brief history of the Promoter:

Shri. S. A. Alagarsamy, Son of Late. Sornam Alagarsamy Naidu, aged 63 years is the Chief Promoter of “Dr. M.G.R. Jatropha Bio-Diesel Project”. He who has dedicated his entire life for the purpose of  “Bio-Diesel Project”. He has done research in 1978-79 on Jojoba and met Dr. M.S. Swaminathan. Since Jojoba is a desert shrub, he has chosen Jatropha as an alternative bio-fuel crop. Born in a traditional family of agriculture and his father Late. S. Alagarsamy Naidu was doing whole-sale business of kerosene during the pre-independence period and he was a massive cultivator of chilies and pulses.

 Reasoning for the promotion of this project:

             33 Million hectares of wasteland have been allotted to tree plantation in India. Jatropha can grow well on wastelands with little inputs. The plantation yields upto 5 tones/hectare oil seeds possible under optimum conditions. If the potential is fully realized India’s current diesel annual requirement of 40 Million tones can be easily met. It is surprising that 5 tones of oilseeds can produce 2 tones of bio-diesel which can be used in automobiles, other agro industrially useful bi-products.

            Jatropha Curcas plants grow on poor degraded soils and are able to ensure a reasonable production of seeds with very little inputs. It is not grazed by animals. It is highly pest and disease resistant.

            Time taken for net yield is 3 - 5 years based on soil and rainfall conditions. Yields vary from 0.5 to 12 tones per year based on soil and rainfall conditions. An average seed production of about 5 tones per hectare can be converted into bio-diesel by a process call transesterification. A yield of 0.75 to 2 tones of Bio-diesel could be expected per hectare per year from the 5th year onwards.

            Bio-diesel from Jatropha are similar to the Bio-diesel produced from rape seed oil which could be used in any automobile. Brand which has been approved for its use by the manufacturers without any modification to use engine or accessories. 

Jatropha Bio-diesel is better for automobiles - Why ? 

            1. Higher octane number indicates potential for higher engine performance.

            2. Better fuel consumption compared to petrol-diesel.

            3. Superior lubricating properties.

            4. Higher flash point for safer storage.

            5. No sulphur or aromatic substances.

            6. Higher oxygen content ( upto 10% )          

Bio-diesel reduces emission of particulate matter by 40%, unburned hydrocarbons by 68%, carbon monoxide by 44%, sulphates by 100%, Poly cyclic aromatic hydrocarbons by 80%, carcinogenic nitrated by 90% on an average bio-diesel complements the working of the catalyst and can help a current Euro - I motor car to attain Euro - II standards.

Jatropha Plantation gives Bi-products / other benefits.

            1. Protein seed cake that can be potentially used as animal and fish feeds.

            2. Organic matter that can be used as organic fertilizer particularly in remote areas.

            3. Other Industrial and pharmaceutical uses from the leaf and seed extracts.

            4. Restoration of degraded land over a period of time.

            5. Rural employment generation

            6. Located production and availability of quality fuel.

 What are the constraints ?

            a. High cost of production

            b. Modifications are required for certain automobiles.

            c. Solidification clogging of the system at low temperature. This problem occurs only when the temperatures go below 00C.

 World Scenario:

Considerable plantations of Jatropha had been undertaken by Zimbabwe, Nicaragua and Nepal. In Zimbabwe four million plants in 2000 hectares, Nicaragua 1 million in 1000 hectares, Nepal 40,000 plants in 22.5 hectares. German auto industry has developed kits to convert all categories of cars for the use of International Development and Embassy of Great Britain extended latter financial support.

 In Tamilnadu land resources are available for Jatropha plantation for production of Bio-diesel such as:

            a. Net cropped area                                                     :           54,67,395 hectares

            b. Net irrigated area                                                      :           29,59,362 hectares

            c. Net rain fed cropped area                                          :           25,08,033 hectares

            d. Government Lands                                                   :             1,25,000 hectares

            e. Private waste lands                                                   :           10,00,000 hectares

 Jatropha will be a suitable crop for waste land where water resource is available at minimum and even in low fertile soil - As such (d) & (e) can be very well brought under Jatropha cultivation.

 Cost of Cultivation:

Cultivation expenses are approximately Rs.18,900/- acre in the year of establishment.

The annual expenses may be Rs.2,500/-  annum therefore.

The gross income is around Rs.15,000/-

The net return is Rs.10,000/- after deducting the annual harvesting and maintenance charges.

Income level is maintained for another ten years.

Therefore the yield increases to 4500 kgs per acre and enhances the profit proportionately

 MARKETING:

            To minimize market risks is by strong price swings through vertical integration of agricultural products, processing and marketing. There will be a contractual arrangement across the stages of product development and distribution. In case of Jatropha Curcas there can be decentralized productions of seeds by farmers who in turn supply the seeds to a processing firm at a predetermined price. Processing firm will also supply the rooted cuttings and other technical advice in cultivation of Jatropha.

            Processing firm produces curcas oil which is subjected to further products namely bio-diesel, soap and bio-manure. Supply of these products are invested to be sold through whole sales/retailers. The firm may supply glycerine produced from curcas oil, to soap manufacturing units. Oil cake would be sold through retailers of fertilizer shops or directly to farmers. This is also to be sold to livestock feed manufactures as input raw material. Joint products of bio-diesel soap and bio-manure will be viable venture.

 FINANCIAL  REQUIREMENT  FOR  PROCESS  UNIT 

            It is proposed to install process machinery for extracting from Jatropha oil seeds and also refining the same to manufacture bio-diesel. The bi-products of this processing would be generated in the process will be directly sold to the other processors. The oil cake produced from remains of the oil refining will be directly used as bio-fertilizer units and feed marketing units. Thus the utility products of the oil refining and oil extracts would be fully utilized.

The sale proceeds of other bi-products are conservatively shown in the outer income in the projected profitability statement.

The working capital requirement has been calculated for the 2nd year of operation even though the actual products of seeds are expected only during 3rd year from the cultivation.  The first year would be utilized for importing the machinery from artisan. The same will be commissioned during the second year of operation. The required seeds for products during second year would be procured from the market. As such the cash generation from the project is reinvested for production of oil/ bio diesel as well as agricultural cultivation. 

CONCLUSION

The projected figures in the projected balance sheet and profitability estimates clearly shows that the project is economically viable and technically feasible.

It is expected that the waste lands are fully utilized all over India in the next 15 years of Jatropha Cultivation in the advent of depletion of fossil fuel, Jatropha bio-diesel would be supply encouraging and is the order of the day. The country shall make use of the wonderful plantation for commercial exploitation. 

 
 

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