Nandan to increase jatropha cultivation

Hyderabad-based Nandan Biomatrix Limited, with interests in biofuels and neutraceuticals, is firming up plans to increase the catchment area for the cultivation of jatropha plants. In the next five years, the company plans to bring 800,000 hectare under jatropha cultivation at 160,000 hectare every year. This will mean 2.8 million tonne biodiesel per annum once the yield starts.

For this, Nandan will tie up with local players for setting up about 200 franchisees at the district level from the present 50. While the franchisee will grow jatropha, the company will provide inputs and have a buy back arrangement.

The company has already formed joint ventures with research institutions in Malaysia and Vietnam for producing high yielding jatropha varieties. It is now looking at South Africa and South America including Brazil. Nandan will provide the know-how to the farmers and will use the produce locally in the refineries there for local consumption, managing director V Bhaskar Rao told Business Standard.

The recently announced biofuel policy, which envisages a 20 per cent blending by 2017, is attracting the attention of ‘green’ funds. The company is in talks with three groups for a $30-million funding. While two of them are green funding agencies, one is a technology partner. Nandan will develop feedstock to meet the requirements of these agencies.

The company also plans to popularise the concept of bio-investment and eco-industrial zones (BIEZs) in ten states. It has formed Nandan Project Development Company, a JV between Nandan and infrastructure and development and finance company IL&FS, for the purpose. The project would start with Gujarat, Orissa and Rajasthan.