Banks denied him funding, the red-tapism and bureaucracy was also of no help. That did not discourage Akshay Vir Singh Tyagi from venturing into Jatropha cultivation seeing the huge potential for biofuels in the coming years.
He has already promoted Jatropha cultivation in 5,500 acres of land in Uttar Pradesh and is aiming high. Tyagi already has invitation to set up projects in Maharashtra.
"Bio-fuel is a necessity now and not a matter of choice or option. Cultivating for bio-fuel production can help create jobs, make use of the wasteland and is an eco friendly venture," according to Akshay Vir Singh Tyagi, proprietor of Delhi-based Aryan Mushrooms and Bio Fuels.
In a chat with Commodity Online at his office in the capital, he lamented on the absence of a structured policy, especially on the funding pattern for bio-fuel industry. The government and private sector should go all out to create a successful bio-fuel revolution in India, Tyagi said.
He said bio-fuels and cultivation of non-food crops like Jatropha offer win-win like situation and the benefits can be reaped for as many as 45 years.
Lot of difficulties faced at the implementation stage has to be solved, especially on granting subsidies to the farmers in encouraging them towards cultivation of non-food crops like Jatropha.
"The mechanism to grant subsidies only on the pre-condition that they will seek bank loans is erroneous at least for the present stage. Instead, what they need is cash-based subsidies as the funding pattern from banks is riddled with many lacunae and bureaucratic hassles," he said.
Tyagi said that his own experience with a public sector bank was disappointing as it summarily turned own its request. He said his experience with another public sector bank was also not good as despite going ahead with the project in December the deal has been