New Delhi: The Central government finally woke up last week to the potential of jatropha plant for bio-diesel production.

At a recent meeting, convened by Winrock International, an NGO, former oil minister Mani Shankar Aiyar said the committee to promote jatropha cultivation - comprising oil secretary S C Tripathi, panchayati raj secretary B S Lalli and Planning Commission advisor R MandaI and representatives' from National Vegetable Oil Development Board, National Rural Development Corporation and other agro and rural bodies, are working on the newfound opportunity.

From January; Aiyar added, the public sector oil companies have started buying biodiesel extracted from jatropha and pongamia. This is mixed with diesel at Rs 25 a litre. "Jatropha seeds cost Rs 5 a kilo and the bio-diesel would be priced around Rs 18-20. Five per cent oil from jatropha will be mixed with diesel during trial runs and the percentage would be increased to 20 in the final phases."

The jatropha is being planted in some one lakh hectares of barren land. A Planning Commission report said the body has asked for eight lakh hectares of forests and community lands for planting jatropha.

Uttaranchal, Chhattisgarh, Tamil Nadu, Andhra Pradesh, Gujarat and Rajasthan have set up independent biofuel authorities and has offered incentives. Financial bodies such' as NABARD and SBI have offered financial schemes to boost this industry in these states.

The jatropha fruit is a nut-like piece with oilseeds within. Smashing the oilseeds releases a refined, petrol-like liquid which can be used for auto-fuels, running water pumps, boring machines and even burning your kitchen fire.