New Delhi, Aug 10 (KNN) State-run oil marketing companies IndianOil, Bharat Petroleum and Hindustan PetroleumNSE -1.32 % on Saturday launched a programme to procure biodiesel made from used cooking oil in 100 cities across the country.

The programme was formally launched by Petroleum and Natural Gas Minister Dharmendra Pradhan, under which the three OMCs would invite expression of interest from private entities for setting up plants to produce biodiesel from used cooking oil.

Minister released the Expression of Interest (EOI) by National Oil Marketing Companies (IOC, HPCL and BPCL) for procurement of Biodiesel made from Used Cooking Oil (UCO).

This year the theme of the World Biofuel Day is “Production of Biodiesel from Used Cooking Oil (UCO)".

The EOI on Bio Diesel from UCO provides that the entrepreneurs setting up Biodiesel plants get remunerative price and assurance of complete offtake of production by the Oil companies.

The programme will be launched in 100 cities, EOI will ensure that Rs 51/ litre is paid for Biodiesel for the first year, Rs 52.7 for the second year and Rs 54.5 for the third year. The Oil companies will also bear the cost of transportation and GST for the first year.

Speaking on the occasion, Dharmendra Pradhan said that Prime Minister has given a target to the Ministry of Petroleum and Natural Gas to bring down import dependency of oil products by 2022, and this can be achieved by enhancing production, improving energy efficiency, promoting conservation and encouraging alternate fuels.

He said that the government is promoting the alternate sources of energy in a big way. Ministry of Petroleum and Natural Gas is working on a four-pronged strategy in this regard -promoting Ethanol, 2-G ethanol, compressed bio-Gas and Bio-diesel.

Government is planning to allow production of ethanol from surplus food grains which now sometimes go waste and also entail expenditure on storage, he added.

On the issue of compressed biogas, the minister said that CGD network being set up in over 400 districts will give a big fillip to it, and already 300 letters of intents have been signed with entrepreneurs for setting up CBG plants.

Mentioning about the Pradhan Mantri Ujjawala Scheme, Pradhan said that the Scheme will achieve its target of 8 crore beneficiaries by October this year, well before the deadline. He said that the scheme has environmental, economic, social and health benefits.