Budget boost to bamboo farmers, ethanol unit in Mul soon

NAGPUR: Even as the general budget by the BJP government at the centre promised to boost the bamboo economy, the movement to provide economic security to farmers in Vidarbha region has already kick-started with an Australian firm planning a biomass-based ethanol unit.
The Australian VTara Energy Group will invest Rs1,500 crore to set up 8 lakh tonne capacity plant in Mul MIDC in Chandrapur district. A MoU has been signed between VTara, Forest Development Corporation of Maharashtra (FDCM), and Maharashtra Bamboo Development Board (MSDB) a few days ago to supply raw material, including bamboo and teak plantation biomass.
“The company has been allotted 35 acre. The company plans to set up 10 such units in Maharashtra,” said TSK Reddy, managing director of MSDB. “The unit will run on sugar cane bagasse and bamboo. Tests at the Nagarjuna Energy Laboratory reveal that one tonne of bamboo gives 340 litre ethanol while sugar cane bagasse gives 80 litre,” said Reddy.
He added this create a good opportunity to cultivate bamboo, especially when condition of transit pass (TP) has also been relaxed. Bamboo is a fast-growing species and can give good returns.
“There is also no risk of bamboo crop failure due to lack of rains. The state government has on June 28 already approved ‘Atal Bamboo Samruddhi Scheme’ through which bamboo cultivation will be promoted through quality tissue culture saplings. The scheme aims to improve livelihood opportunities and standard of living,” said Reddy.
Union finance minister Nirmala Sitharaman also announced on Friday investment in agriculture infrastructure and support for private entrepreneurships in driving value to farmers’ produce.
Sitharaman said for allied activities like bamboo and timber, government would focus on value-addition from the hedges and for generating renewable energy. She also promised units commensurate with the goals of the central government to double the income of farmers by 2022.
On the market for ethanol, Reddy said Indian Oil Corporation (IOC) has already floated expression of interest (EoI) to buy it at Rs59 per litre. “We are also in touch with Maharashtra State Road Transport Corporation (MSRTC), which has a fleet of over 18,000 buses for ethanol use,” he added.