largest petroleum refining and marketing company, has established
itself as a major player in the biodiesel business. Based on the
findings of M/s KPMG, IndianOil chose Chhattisgarh as a prime
location for developing biodiesel projects. IndianOil has also
initiated large-scale biodiesel projects on different models in
Madhya Pradesh and Uttar Pradesh.
The Chhattisgarh government (GoCG) under the guidance of Chief
Minister Dr. Raman Singh has played a proactive role in promoting
energy crop plantation projects in the state. The Government
through its two agencies dedicated for development of renewable
energy, Chhattisgarh Biodiesel Development Authority (CBDA)
and Chhattisgarh State Renewable Energy Development Agency (CREDA)
has undertaken plantation of Jatropha on 70,000 hectares of
wasteland in the state.
Considering the potential of Jatropha plantation in the state of
Chhattisgarh and favourable Government policies IndianOil entered
into a MoU with the GoCG on 19th November 2007 which was converted
into a Joint Venture Agreement (JVA) with CREDA and GoCG on 8th
October 2008 for the purpose of setting up a JV company for
undertaking a biodiesel project in the state.
A JV “IndianOil – CREDA Biofuels Ltd.” between M/s
IndianOil Corporation and Chhattisgarh Govt. was incorporated
on 6th Feb’09.
IndianOil and CREDA hold 74 percent and 26 percent equity,
respectively in this JVC, which has an authorised share capital of
Rs 400 crores. IndianOil – CREDA Biofuels Ltd is slated to produce
30,000 metric tonnes (MT) of biodiesel per annum from energy crop
plantation on 30,000 hectare of revenue wasteland.
The plantation activity of ICBL will enhance rural job creation,
carbon sequestration and will help in improving the health of
soil, air and water regimes.