The company is negotiating with institutions like State Bank of India, Exim Bank and Bank of Baroda for term loan and the expected debt equity of the project would be 30:70. The project, with an annual capacity to produce 100,000 tonnes of crude biofuel and edible oil, is expected to commence its operations in 4-6 years.
Aditya V Agarwal, director of Emami group jointly with President of the state of Oromia, Ethiopia, said: “The company will take up plantation of jatropha, bio-fuel crop and other edible and non-edible seeds on 1,00,000 acres. The company has already received 27,500 acres of land and work will begin soon with initial investment of Rs 120 crore.”
Agarwal, added: “Bio-fuel would be exported to India for producing bio-diesel and the edible oil produced in Ethiopia will be used for captive consumption. We have engaged Mott McDonald for conducting a feasibility study for the project.”
The company operates a bio-fuel plant at Haldia in the eastern state of West Bengal, with a capacity of 300 tonnes of bio-fuel per day and 1,000 tonnes of edible oil, Agarwal continued.
Emami would import the entire production of jatropha oil produced in the African country in its Haldia plant for refining.
