Indian Oil, Ruchi Soya float Indian Oil Ruchi Biofuels LLP
25 Mar 2010
Mumbai: Indore-based soya producer Ruchi Soya Industries Limited (RSIL) and public sector oil marketing company Indian Oil Corporation Limited (IOCL) today signed a limited liability partnership agreement to form Indian Oil Ruchi Biofuels LLP, to undertake jatropha plantation in 50,000 hectares in Jhansi and Lalitpur in UP.
The LLP will also set up oil extraction unit and a transesterification plant of 300 TPD at at total project cost of Rs436.63 crore, part of which will be funded by the state government of Uttyar Pradesh under the National Rural Employment Guarantee Scheme (NREGS) scheme.
The equity amount of Rs126.67 crores will be funded eqully by Indian Oil and Ruchi Soya, the flagship of the Ruchi Group.
The boards of the two companies have approved the project.
The state government had earlier approved the Ruchi Biofuels project for inclusion in its bio-diesel value chain scheme, but had wanted the company to tie up with an oil marketing company.
Uttar Pradesh has about 10 lakh hectares of waste land on which Jatropha can be planted. Jatropha being a hardy plant needs very less water and can be planted on these waste lands. The Jatropha seeds contain 30 per cent oil, which can be extracted and processed into bio diesel.
Ernst & Young were appointed as consultants to asses this project.
