International crude oil prices are going up and there is no respite for India. The increase in requirement of fuel for vehicles has been increasing steadily over the past few years. The demand has increased as the car sector started witnessing stupendous rise in sales performance.
India depends largely on external sources for its oil requirement. Most of the oil supplied to India is capped with subsidies, where the government acts as a buffer and absorbs all the impact of global price variations.
Since the crude oil prices have been ascending from the past decade, more research is taking place on viability of alternative fuel. Several car manufacturers
have found that the bio-fuel technology is most cheap and easy to adapt. It is also environment friendly with low emission levels. In India bio-fuel research and production have been started nearly five years ago. But the surge in crude oil prices has renewed interest in bio-fuel production.
Suddenly the corporate sector and public sector units have started showing interest in cultivation of non-edible oil seeds which will be converted to bio-fuel. Many corporate majors are showing interest in the production of bio-fuels. Shapoorji Pallonji, Tata Group, Reliance Industries, Bharat Petroleum and several other biotech companies are undergoing research. The Tata Group is set to invest Rs 1500 crore on research and development of Bio-fuel
. The production is likely to take place over the next five years. Mahindra & Mahindra and bus manufacturer Ashok Leyland are also in the queue. Nandan Biotech Company is also taking initiative with MNCs like Petronas, Cheveron and Global Environment fund to take up jatropha cultivation.
Earlier, environmentalists were only making research on bio-fuels but with sudden scarcity of crude oil in the market, it has become the urgent requirement for the automobile industry. Large sum of money is being invested in the bio-fuel sector. Investors are setting up mills to refine the oil output. Jatropha plant cultivation has also gained attention among farmers.
Bio-fuel has gained a sudden demand in several automotive sectors. It will cost only Rs 26.50 per liter to the consumers. As petrol is nearly touching Rs 60 per liter and diesel is also very costly, bio-fuel makes a lot of sense when in comes to cost saving and fuel efficiency
. There is need for more research on this subject and car manufactures have to set up more research facilities. This will help the agriculturally rich but cash poor farmers to get useful yield. Government should also need to regulate the growth and distribution of bio-fuel seeds.