Chennai, Sep 27 (UNI) Minister of State for Railways R Velu today said a policy decision would be taken by his Ministry for producing bio-diesel for its own use this year.
Inspecting the pilot bio-diesel plant at the Perambur Loco Works here, he said the plant had developed a processing mechanism for converting pungam, jatropha, neem, soyabean oils, besides used cooking oil, palm oil and fish oil into bio-diesel.
The oil produced would be used in locomotives, diesel mutliple units, industrial and road vehicles.
Referring to railways jatropha cultivation mission, he said jatropha was cultivated in the railway lands either through the department or public-private partneship on equal sharing basis. But it did not get the desired public patronage. Hence, the railways decided to take a policy decision this year based on the feasibility report prepared by it.
He said the railways was spending on average Rs 4,500 crore for diesel every year. About one fifth of the cost to the tune of Rs 1,000 crore could be saved if 20 per cent of bio-diesel was used.
At present bio-diesel was produced at a cost of Rs 60 per litre under the pilot plant and the cost could be brought down during mass production.
Mr Velu said Perambur Loco Works would be modernised at a cost of Rs 72 crore as part of its Platinum jubilee celebrations.