Rs 140cr integrated biodiesel plant to come up in Kakinada

Naturol Bioenergy Limited is setting up an integrated state-of-the-art oleo bio-technology facility in Andhra Pradesh. The 300 tpd biodiesel plant will come up in the port town of Kakinada at an estimated cost of Rs 139.5 crore and would be a 100 per cent export-oriented unit.

According to Bhaskar Chalasani, managing director and chief executive officer, Naturol, "Naturol is the first greenfield start-up manufacturing project in this segment to be financed both by venture capitalists (VCs) and traditional banks with round one funding of Rs 139.5 crore. APIDC VC is the lead and early equity investor with Sidbi VC and UTI VF playing a supportive role to raise Rs 56 crore equity. IDBI is the lead term lending institution supported by a consortium of term lending institutions and banks providing Rs 83.5 crore long-term loans."

"Our project is based on the model, which countries like Brazil have adopted successfully. It has helped agro-business turn highly profitable. Initially, we aim to turn 1,20,000 acres of dry wasteland across the state into productive land by encouraging energy crops for captive consumption. As we move ahead to 1,000 tpd capacity, we will cover more dry wasteland across Andhra," he added in a press release.

Naturol has initiated the ground work and is planning to complete the project implementation by October 2006 to declare commercial production. The project has the potential to create 12,000 jobs in the agro sector, the press release added.