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Southern Bio to set up Rs 17-crore bio-diesel plantnews
Our Corporate Bureau
19 February 2005

Hyderabad: Southern Online Bio Technologies (SBT) is setting up a Rs 17.1-crore bio-diesel production plant.

This will be the first commercial bio-diesel production plant in the country and would have a capacity of 10,000 tonnes a year. According to N Satish Kumar, managing director of Southern Online Bio Technologies Limited, the plant will commence production by November this year.

Kumar said the plant would be partly funded through internal sources and a rights-cum-public issue. "We expect to raise around Rs5.7 crore from the rights issue and Rs8.4 crore from the second public issue of the company," he added and said that the promoters would invest the remaining Rs3 crore.

The company has entered into an agreement with a number of farmers to purchase its raw materials. He said that the bio-diesel plant would not release any effluents into the ground or air and prevent the equivalent of 27,000 tonnes of carbon dioxide from being released into the atmosphere.

Kumar also said the project would result in some fallow land coming into use and around 1,500 people would benefit from the facility. He said three million plants spread over 500 acres are expected to come up in the next three years, he said.

The company has also has received the 'host country' approval from the ministry of environment, which entitles the company to sell carbon credits after receiving appropriate approvals.

SBT has also obtained the German government's approval for a grant of € 3,80,000 (Rs2 crore) in support of the project.

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Southern Bio to set up Rs 17-crore bio-diesel plant