Emami Biotech to invest Rs400 crore for biofuel, edible oils in Ethiopia
04 Aug 2009
Emami Group's company Emami Biotech will invest Rs400 crore in Ehiopia for its biofuel and edible oil project. The project, spread over 100,000 acres of land in the Oromia state, envisages extraction of 100,000 tonnes of biofuel (from jatropha crops) and edible and non-edible oil per annum.
Group director Aditya Agarwal has said that the company has taken possession of 27,500 acres of land and work has begun. The land has been alloted to Emami Biotech by the Oromia Investment Commission, and is on a 45-year renewable lease. Mott McDonald conducted the project's feasibility study.
''While Emami Biotech will bear 30 per cent of the project cost, the remaining funds will be mobilised from banks and financial institutions,'' Agarwal said.
The company plans to export biofuel from the project to India for producing biodiesel, while edible oil will be sold locally in Ethiopia. The project is expected to be fully operational in four to five years.
Among the crops to be grown on the plantation are jatropha, sunflower, castor, pulses, menthol and other herbs.
The first phase of the project will see an investment of Rs120 crore, and the company is seeking long term loans from Exim Bank, Bank of Baroda and State Bank of India.