Railway looks to bio-diesel for lower fuel bills

"The railways will provide four acres of land for each of the four bio-diesel plants, while the private firms will be charged an interest of 6% on the land value per annum"

Mumbai:- In a bid to cut its mounting diesel bill, the Indian Railways ha decided to set up four bio-diesel plants across the country with the help of private companies. It plans to mix 5% bio-diesel with the conventional diesel, aiming to increase the blend up to 20% in coming years.
The railways, on an average, consumes 2 million kilolitre of diesel every year. Given the spiralling fuel rates, the bio-diesel effort can substantially reduce the railway's bill.
A senior official said the railways has been trying bio-diesel in various proportions in different engines. "The results have been encouraging. As a result, the railways has decided to start commercial production of bio-diesel to mix it with diesel," he said.
The railways has proposed to set up the bio-diesel plants at Tughlakhabad under Northern Railway, Raipur under South-East Central Railway, Itarsi an West-Central Railway and Erode under Southern Railway. The venues, though already selected, can be changed after consultations with private firms, said the official.
For the uninitiated, bio-diesel is made out of seeds of Jatropha plant. The oil extracted from the seeds is treated in a filter press for basic purification. It is then passed through the bio-diesel esterification process to get the right blend. The bio fuel can be mixed with regular diesel.
The railways has also called private companies to establish and operate bio-diesel plants for a period of 20 years. "The railways will provide four acres of land for each of the plants, while the private firms will be charged a nominal interest of 6% on the land value per annum," said the official. The railways may also provide for water and electricity required by the plant.
The private firm has to set up an automised bio-diesel unit, along with a effluent treatment plant. "The private firm will also have to arrange for the Jatropha oil seeds, the raw material," said a railway official. The private firm, if required, can start a unit with a lower capacity to manufacture 10 kilolitre of bio-diesel. "The firm can increase the capacity to 50 kilolitre, once sourcing Jatropha becomes easier," said the official.