State govts should exempt tax on alternative energy sources: Deora

New Delhi, Feb 7 (UNI) With a view to provide friendly environment to alternative energy sector, Petroleum Minister Murli Deora today urged the state governments not to levy taxes on alternative fuel sources.

''We are in talks with the state governments for giving tax exemptions on alternative energy sources,'' Mr Deora told reporters here.

The minister said some states have agreed for tax exemptions, while others are being persuaded.

Currently, there is 60 million hectares of wasteland in the country that could be used for jatropha cultivation for achieving the target of 5 per cent blending.

India plans to replace around five per cent of its current 40 million tonnes of annual diesel consumption with jatropha biodiesel within five years.

Mr Deora said the wasteland could be used effectively for jatropha plantation.

He said development of biodiesel as an alternative and renewable source of energy for transportation sector has become critical in the national effort toward maximum self reliance in energy.

The country imports 70 per cent of its crude oil requirements.

Last year, India consumed around 40 metric million tonnes of high speed diesel.

Jatropha, one of the raw materials used for production of biodiesel, starts bearing fruits in the second or third year of its plantation and produces harvestable yield of about 1.5 to 2.5 kg per tree.

Currently, the country requires more than 100 million tonnes of oil, which is expected to reach between 350 to 500 million tonnes in the next 25 years.

UNI