Strategic Partnership For Integrated

Bio-diesel Project For

The State of U.P

INRODUCTION
Green Fuel (Bio-Diesel)
The concept of bio fuel dates back to 1895 when Dr. Rudolf Diesel built the first diesel
engine to run on vegetable oil. India is one of the largest petroleum consuming and
importing countries. India imports about 70% of its petroleum demands. The current
yearly consumption of diesel oil in India is approximately 40 million tones constituting
about 40% of the total petro-product consumption.
Bio-diesel is a variety of ester-based oxygenated fuels derived from natural, renewable
biological sources such as vegetable oils. Biodiesel operates in compression ignition
engines like petroleum diesel thereby requiring no essential engine modifications.
Moreover it can maintain the payload capacity and range of conventional diesel. Biodiesel fuel can be made from new or used vegetable oils and animal fats. Unlike fossil
diesel, pure Bio-diesel is biodegradable, nontoxic and essentially free of sulphur and
aromatics.
Bio-diesel is a clean burning alternative fuel, produced from domestic, renewable
resources. Bio-diesel contains no petroleum, but it can be blended at any level with
petroleum diesel to create a bio-diesel blend. It can be used in compression- ignition
(diesel) engines with little or no modifications. Bio-diesel is simple to use, biodegradable,
nontoxic, and essentially free of sulfur and aromatics.
Bio-diesel is made through a chemical process called Transesterification whereby the
glycerin is separated from the fat or vegetable oil. The process leaves behind two
productsmethyl esters (the chemical name for bio-diesel) and glycerin (a valuable
byproduct usually sold to be used in soaps and other products).

INTRODUCTION OF PROJECT

Project Proposal:
This project is an initiative towards the betterment of the society. The project is to be
carried out with the aim of producing green fuel Bio-Diesel for which we need to plan
the plantation of Jatropha in a large scale to get the feed stocks.
Government of Uttar Pradesh has declared the Horticulture department as the nodal
agency for promotion and cultivation of Jatropha in the state. In coordination with the
Horticulture department, planning department initiated awareness generation programs
for cultivation of Jatropha in the State in June 2005. Awareness camps were organized
and addressed by state coordinator for Jatropha cultivation in the state in about 10
districts and written material, CDs on the subject had been circulated to all district
Magistrates and chief development officers.
During the year 2005-06, Jatropha plantation has been accomplished in about 5000 acres
in the state. This had been done without provision of any subsidy to the farmers. In
addition, Jatropha plantation in about 2500 acres has already been completed by forest
department, government of U.P. in Mahoba & Mirzapur district and Utthan centre for
sustainable development and Poverty Alleviation Allahabad with the support of NOVOD
Board in 2005-06.
During year 2006-07, the state government has also decided to encourage farmers to
undertake cultivation of Jatropha in about 10 lakhs hectares of wastelands in 30 dis tricts
of the state. The state government intends to bring about 1, 23,000 hectare spread in 30
selected districts of U.P under Jatropha cultivation.
Bio-diesel is cleaner than petroleum-diesel and will also help the local environment.
Since it is renewable and there is no net emission of carbon, it can also qualify for carbon
trading under Kyoto Protocol. The state government is taking all steps to promote
cultivation of Jatropha in wastelands in the state.

Mission
To cultivate minimum of 2 lakh acres starting from 2007, adding 2 lakh acres each year
in the next 5 years. In the 1st phase, the target is to produce 100,000 MT Bio-Diesel,
increasing the capacity with high yield and high oil content variety seeds.

Objectives: Development of 200,000 acres of Bio-diesel pla ntation every year.

10 lakhs acres of Jatropha plantation in the next five years.
Covering un-utilized & under-utilized lands for sustainable development.
Provision of additional income to the farmer.
Generating rural employment.

Over all improvement of rural economy.

Setting up of Transesterification units for producing Bio-diesel.

THE PLANT-PROFILE

INTRODUCTION
Jatropha curcas is a drought-resistant perennial, growing well
in marginal soils with low nutrient content. It grows relatively
quickly and lives for about 25-30 years (giving consistent
yields).
Jatropha, the wonder plant produces seeds with oil content of
35%-40%. The oil can be combusted as fuel without being
refined. It burns with clear smoke-free flame, tested
successfully as fuel for simple diesel engine. The by-products
are: press cake, organic manure, oil also contains insecticidal
properties.
It is found to be growing in many parts of the country, rugged in nature and can survive
with minimum inputs and is easy to propagate.
Medically it is used for diseases like cancer, piles, snakebite, paralysis, dropsy etc.
Jatropha grows wildly in many areas of India and even thrives on the lands having low
nutrient capacity, thus a good crop can be obtained with little effort. Depending on soil
quality and rainfall, oil can be extracted from the Jatropha nuts after two to five years.
From fifth year the annual yield is up to 12.5 MT/year. The kernels consist of oil to about
60%; this can be transformed into Bio-diesel fuel through Transesterification.
One of the major advantages of Bio-diesel is that it can be used in
existing engines and fuel injection equipment with little impact to operating
performance. Bio-diesel also has a higher cetane number than diesel fuel.

Strategic Partners
Background
Jatropha Mission Cell: Jatropha mission cell will work as a facilitator in providing all necessary systematic help
to other partners involved.
Roles and Responsibilities:
Co-ordination between different departments.
Financing facilities for farmers and villagers.
Promotional campaign in rural sectors.
Awareness through various programmes.
Support from various schemes of government.
State government is promoting P4 model in the state: Public Private Panchayat
Partnership model.
Role of government agencies like Horticulture department, state coordinator for
Jatropha in the planning department is primarily to act as facilitator and
disseminator of knowledge.
A ready market for bio-diesel in the villages as the diesel pump sets and tractors
can be efficiently run on bio-diesel.
Exclusive buyer status or licenses field stocks for next 15 years and extend above
for next 15 years to J.V. partners.
Exclusively Licenses to setting up Transesterification unit in U. P.
Ensure all administrative and infrastructure support and clearance related issues.
All types of clearance requirement if required in project this cell will assist in that
matter.

Biotech park, Lucknow: Biotech Park, Lucknow, a pioneer research center will provide the support and benefits to
their partners about their own ongoing programmes. They will also provide the facilities
for high quality plantation at the right time and quantity and will provide the technical
support for fixing the price of the sub-components.
In the objective to developed a high superior varieties and yields. To achieve this
objective, the company likes to collaborate with Biotech Park in the area of Bio-diesel for
which we required these facilities.

Roles & Responsibilities:

Agricultural Bio-technology.
Crop monitoring services.
Provide the needed R & D for Bio- fuel plantation.
Development & manufacturing of Biological inputs.
Crop improvement & management services.
Production of quality Bio- fertilizers & pesticides.
Micro propagation and large-scale production of Jatropha for utilizing the existing
facilities for production.
Bio Information.
Analytical Facilities centre
Knowledge data bank sharing.
Tissue culture (micro propagation protocol)
Bio fertilizers
Green houses, Mist chambers, Poly houses and shade net houses
Storage space in their campus.
Extraction and up scaling.
Distillation plant at nominal cost.
Laboratory equipments.
Services of technical or non technical manpower.
All these facilities required for next 12 years.
Office Infrastructures.
On Campus accommodations.
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Nandan Biomatrix Limited: Nandan Biomatrix is an integrated company in the field of Nutraceuticals and Bio-fuels
dedicated to the research & development and commercialization of medicinal plants and
its extracts. They make state of art nursery for Jatropha plantation. Uttar Pradesh govt.
has allotted 100 acres of land in Kanpur district to Nandan for setting up their own pilot
nursery, research & development centers and training centers for farmers, which will
establish till the start of June 2007-08. Nandan Bio matrix will provide buy back facility
to the farmers and will help in the plantation of medicinal plants. On the other hand, this
will help in increasing the income of the farmers. It will also provide insurance coverage
(input and output cost) to the farmers growing Jatropha curcas. Company will provide
superior quality planting material and other necessary inputs to the farmers.

Roles and Responsibilities:

Awareness generation programs and market development.
Training to farmers and franchisees.
Developing catchments area with fixed target.
Establishment of R&D centers and clonal stations for multi propagation methods.
Supply of superior quality planting material.
Supply of quality Bio- inputs for better yields.
Technical supervision of the plantation.
Coordinating with insurance agencies, financial institutions, subsidiaries etc.
Provision of standardized package of practices targeted for higher yields.
Assured buy-back of produce.
Seed procurement centres.
Storage facilities for seeds.
Setting up of expelling and Transesterification units.
PR networking and technical collaboration.

Milestones achieved
100 acre land for state of the art R&D centre situated on Kanpur-Agra highway.
Working since last 2 years for sites specific varieties for U.P state.
Experience of already working with A.P government in similar project.
Appointed franchisee and sub-franchisee for 30 districts in U.P.
Initiated networking with government since last 1year.
Appointed administrative and technical manpower for U.P state.

Bharat Petroleum Corporation Limited (BPCL): BPCL is one of India's largest PSU companies founded in 1976. It is involved in the
refining and retailing of petroleum products.
BPCL, the oil giants principal activities are to refine and market petroleum, liquefied
petroleum gas and petrochemical products. Now BPCL has jointly developed a
comprehensive business model to enter into Bio-Diesel Value chain starting from
Jatropha plantation to marketing of Bio-diesel. They would purchase and market the biodiesel through BPCL Retail outlets.

Roles & Responsibilities:

BPCL will develop bio-diesel receiving facilities at their storage locations i.e.
tank lorry unloading facility, separate dedicated storage, online blending with
associated facilities at their cost.
BPCL will also provide loading facilities of Bio-Diesel for its subsequent dispatch
to market in the tank Lorries arranged by BPCL.
Marketing of the Bio-Diesel product through BPCL Retail Outlets.
Prompt payment of value of Bio-diesel to the supplier as per the agreed price.
Bio diesel producers will have the option to utilize the arrangement of product
transportation finalized with their fleet owners for transportation of bio-diesel
from the factory to BPCL depot.
Any technological advancement in the field carried out by BPCL will be shared
with all the member of the consortium for the common benefit to improve safety,
logistics and reduce operational/maintenance cost.
BPCL is examining to nominate some of its locations such as oil depots/bottling
plants/ Upcountry retail outlets, etc. which may be used as seed collection centers
on agreed terms.

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 The lab testing facilities can also be used by consortium members for testing the
quality of their product.
Setting up quality testing centre at depot premises for quality checks.
BPCL is also arranging Jatropha plantation at there storage location for which the
company is trying to develop hi- yield variety Jatropha plants through technical
institutions which can be shared by the participating companies to source sapling
/seedlings from the nominated locations /specified costs.
BPCL may impart training to the staff of other consortium members on the
handling of Bio-diesel.

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Shapoorji Pallonji & Co. Limited:Shapoorji Pallonji & Co. is the oldest Indian construction company with a legacy of 140
years. The y are first Indian construction company to enter the Middle East (Oman Palace)
in the 1970s and first Indian construction company to have earned the ISO 9001
Certification. The y are first Indian company to construct two, sixty-storey residential
towers in the heart of Mumbai. Shapoorji Pallonji Co. & Ltd. is one of the leading
construction giants in India and abroad.
Shapoorji Pallonji & Co. has tied up with Nandan Biomatrix Ltd. for cultivating Jatropha
in different districts in 1.50 lakh hectare lands under the Jatropha mission cell and also
for setting up a Transesterification unit in Kanpur Jhansi within the year 2008-09.

Roles and Responsibilities:

Infrastructure development.
Liason with the government of India and U.P.
Establishment of Transesterification unit.
Setting up of high quality Bio-fuel processing units.
Integration, Co- ordination and collaboration.
Institutional support.

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Operational Methodology
This project would be carried out in six phase. All phases have certain time period
allocated. Under these, all assigned activities would be achieved with in a specified time.

Setting - up R & D Centre

Phase 1
To develop state of the art R & D centre in the allotted 100 acres at Kanpur
District.
Additional R & D centre in association with Biotech Park, Lucknow.

Setting - up Nursery and Production Centre

Phase 2
Nursery and Production set up.
Training centre.
Demonstration centre.
Appointment of required manpower.

Franchisee Network Development

Phase 3
Appointment of franchisee in each district.
Targeting 30 districts.
Targeting 7000-8000 acres in each district.
Training franchisees.

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Financing and Awareness

Phase 4
Arranging micro finance to farmers.
Awareness through various promotional programmes: seminars, advertisements,
conference etc.
Financial support through various schemes of government.

Ground Level Implementation

Phase 5
District wise training program for farmers.
Logistics and supply of inputs for plantations.
Completion of the target as per the marketing plan.
Through franchisee model, NGOs, PPP model.

Seed procurement centre and Bio-diesel production plan

Phase 6
Seeds procurement :
Weigh scale
Decorticator
Oil Expeller (50 TPD) * 36
Solvent extraction unit (120 TPD) *12 nos.
Pre-treatment and Transesterification (300 TPD = 100000 TPY) *1

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Duration of Phases
2007-2008
Sr.
No.

Phase / Months

Setting up R & D
Centre

Setting up
Nursery center &
manpower

Franchisee
Network Dev

Financing And
Awareness

Ground Level
Implementation

MAY

JUNE JULY

Setting up
Demonstration
unit
Seed procurement
centre & Bio-diesel
production plan

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AUG

SEP

OCT NOV DEC

200809

Joint Venture Partners Action Plan

Nandan Biomatrix Ltd.

Integrated Development
centre

NandanNursery /Demo/
Training

BPCL For
In & Out Logistics
And
Forward Sales

J.V. Partners
Nandan /BPCL/ Shapoorji
Transesterification

Role of Jatropha
Mission Cell (U.P
Govt.) & their
Support like
Co-ordination
Infrastructure
R & D support
Land
Micro finance
Subsidiaries
etc.

R & D in Joint
collaboration with
Bio Tech Park
Lucknow

Implementing district
Cultivation by
Nandan
through franchisees
Shapoorji
Pallonji
For Infrastructure
development

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J.V. Partners
Transesterification
Unit

Hub & Spoke Distribution Model

All green circles are seeds collection centers. In
this model logistics required from field to
collection center and collection center to
Transesterification unit for carrying seeds. In this
model there are 36 collection centers. All these
activities will be managed by BPCL.

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Franchisee network

SPV
Buy Back
R&D
Technology
POP
Training
Expellers and Extraction

Production Centers
Nursery centers
Logistics and Supply chain
Mgmt.
Operations

Franchisee

To identify and tap farmers, corporate and

Cooperatives
Service to the farmers
Co-ordinate with Financial institutions,
Insurance companies, Subsidy agencies etc
To co-ordinate with production center for
Supplies and logistics
To offer package of practices to farmers

Farmer

Jatropha cultivator

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Equity Participation

Share of Strategic Partners

20%

BPCL

40%
Nandan Biomatrix ltd.

40%

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Shapoorji Pallonji & Co.

ltd.

Thank you!!!

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