14th Apr 2005 07:30
D1 Oils Plc14 April 2005 14 April 2005 State Bank of India funds jatropha cultivation D1 Oils plc ("D1 Oils"), the low cost global producer of biodiesel, todayannounced a significant boost to its renewable fuel programme in India as D1Mohan Bio Oils Limited, ("D1 Mohan"), its 50:50 joint venture, signed a Memorandum of Understanding ("MOU)") with the State Bank of India ("SBI") toprovide Rupees 1.3 billion (approximately £15 million) to local farmers inTamil Nadu to plant up to 40,000 hectares of jatropha. The harvested seeds willhave an anticipated yield of between 100,000 and 120,000 tonnes of crudejatropha oil per annum (assuming the full 40,000 hectares are planted). Thecosts of servicing the loans will be deducted from the price paid by D1 Mohanfor the seeds. D1 Mohan is a joint venture between D1 Oils and Mohan Breweries & DistilleriesLimited in India. In January this year, D1 Mohan announced it would aim toplant up to 100,000 hectares of jatropha across India in 2005. The financing arrangements are a key component of this plan. D1 Oils has the option to export25% of the crude oil to its international customers, with the bulk of the crudeoil being retained for domestic bio diesel production. The use of bank financeto provide farmers with the ability to purchase seedlings and planting materialsenables the business in India to expand more rapidly and conserve workingcapital. P Chaudhuri, Chief General Manager of SBI, said, "Small farmers and landlesslabourers will benefit as we shall finance the cultivation. They shall find aready market for their produce from D1 Mohan. The loans will be realised fromthe sale of the crop." M. Nandagopal, Managing Director of D1 Mohan, remarked, "We believe the creationof a sustainable, renewable energy programme in India with all of theassociated economic and environmental advantages is important and this agreementis a very good step in the right direction." Philip Wood, CEO of D1 Oils, commented, "This is a further endorsement of ourjatropha programme. Obtaining external finance for the farmers is an importantstep for D1 Mohan towards achieving its objective of a rapid, large scale implementation of this programme in India." Enquiries Philip Wood D1 Oils plc 020 7321 3885Kevin Byram/James Crampton Brunswick 020 7404 5959David Cunningham Bell Lawrie White 0141 314 8105 Notes to editors: D1 Oils plc is the owner of technical, marketing, logistical and otherintellectual property related to the establishment, development and harvestingof jatropha plantations, the extraction of oil from the harvested seed and theproduction of biodiesel and other valuable by-products from the vegetable oil. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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