INCOME GENERATION FROM jatropha OIL

Project guide

Mr S.B. kulgod
By, ABHISHEK SINHA(1052)

The absolute development of a country has two facetseconomy and environment. While moving towards a skyrocketing economy we cant neglect its environmental aspects. For a healthy country environment protection is as important as employment generation and it is possible only with optimum utilization of resources. So taking into both aspects of development we thought of a project which will satisfy both the requirements .i.e biodiesel production by cultivation of jatropha. In coming years we are going to face scarcity of both energy and cultivable land. We cant sacrifice either of them for the sake of development. So cultivation of jatropha takes care o f both aspects. As the energy demand of world is increasing at 2.3%per year so in coming years availability of energy will be issue of concern. So sustainability of business of biodiesel production with profit has no doubt.Also government of India has set target of achieving 20% share of fuel demand through biofuels by 2017.So future is promising to invest in this sector

INTRODUCTION

This product will help farmers to improve their socio economic condition by getting benefits of the changing demand and expectations from farming community to go beyond traditional farmnig practises and conventional crop production which has lots of risk of failure and low returns in terms of both yield and money.This product will also provide environmental friendly solution to the problem of global warming without hampering the benefits of farmers and corporates as well

MISSION STATEMENT

Place of Project; Ahmednagar(Maharashtra) y Duration of data collection; 7 days y Sample size; not defined(survey includes farmers,NGOs and local industries involved in jatropha cultivation). y It will be a partnership firm.
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Project Design

Progress till date y Preparation of questionnaire y Finding NGO y Application to funding & branding agency. (ex.GVEP) y interaction with farmer. y Other secondary research.
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Marketing
Marketing and awareness programmes will be done through local NGO and farmers meeting, one to one contact. Promotional activities for refineries will include display on websites and direct supply through meeting with dealers at competitive price and round the year availability at desired quality due to mass scale production. We have applied for GVEP(global village energy partnership) International sponsorship, they have positively responded if it turns out then we will get funds and recognition world wide for producing biofuel. We have approached to Govind Gram Vikas Pratishthan (GOGVIP) for creating awareness.Its a 13 year old NGO working in Ahmednagar district and has a good hold on farmers.Due to Constant counseling and untiring efforts of GOGVIP members lead to the mass plantation of Jatropha in this area. Plantation of Jatropha not only helped to raise the underground water level but also provided for replenishing the soil

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Methodology(exploratory)
Interaction with farmers,NGOs,and industries. Assessing questionnaire. Creating awareness. Proposal for funding by govt. and other agencies. Assessing the soil type and environmental factors.

Parameters Installation cost Power consumption Cost of power Consumption Steam Cost of steam Man Power Cost of manpower Processing cost/ton Investment Depreciation Total cost of Processing/ton TOTAL OPERATIONAL COST

1 t/day cap Rs. 70,000 45 KWH Rs 225 600 kg/ton Rs. 180 3/day Rs. 450/ton Rs. 885 Rs. 45 Rs. 900

3688/t/day

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TIMELINE
Cost of Planting(Rs) Cost per hectare in first year is Sapling(1000) 600 Fertilizer/Manure 200 Labour 600 Irrigation/Plant protection 300 The cost of plantation comes around 1700. Cost per hectare in second year is Sapling(200) 1200 Fertilizer/Manure 400 Labour 1200 Irrigation/Plant protection 600 The cost of Plantation comes around 3400 inclusive of replantation and maintenance for 2nd year.

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Cost per hectare in third year is Fertiliser/Manure 500 Labour for fruit collection 500 Irrigation/Plant protection 500 The cost of plantation comes around 1500,inclusive of maintenance for third year and subsequent years.

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PROJECTED INCOME FROM PLANTATION (Rs.) Income in 3rd year Yearly seed collection- 2000 kgs Price of seeds expected- 6/kg Income expected- 12000/hec Income in 4th year Yearly seed collection 3000kg Price of seeds expected- 6/kg Income expected- 18000/hec Income from 5th year Yearly seed collection-4000kgs Price of seeds expected- 6/kg Income Expected- 24000/hec

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TOTAL COST INCURRED(IN Rs) Cost of Cultivation for 150 hec . OF LAND: 990000(including fixed cost ie,4800/ha) TOTAL WORKING DAYS FOR 300t fuel-300 TOTAL COST OF OPERATION PER YEAR-(3688*300) =1106400 COST /hec-13,976 OIL EXTRACTED /hec-2000kg ~ 1800 lt SALES REVENUE-1800*26.5( 26.5 is the market rate of oil)=47700/ha Selling Price/L = 26.5 Fixed cost/L =2.6 Variable Cost/L = 7.7 GROSS PROFIT/hac- 33724 Gross Profit/L = 18.7 Break Even Point= fixed cost/sales revenue- variable cost = 4800/47700-13976* 100 = 14% This means that when 14 % production is achieved then firm will start making profits.Target is not very high and can be achieved by 3-4 years of income generation.