The Hindu Business Line : Southern Online to sell bio-diesel at Rs 2 less

Southern Online Bio Technologies has decided to sell its bio-diesel at Rs 2 less than the regular diesel oil. Mr Satish, the company's Managing Director, told Business Line that the company could offer the oil at a lesser price as the State Government put the oil in the vegetable oil segment. The segment attracted 4 per cent VAT.

The company's manufacturing unit in Nalgonda district started trial runs a month ago. "We hope that it will be stabilised by mid-November," he said.

According to him, several buyers from local and international markets have shown interest. "We are close to entering into purchase agreements with some of them," he added.

On raw material availability, he said the company had secured enough material for one year. Also, the unit was based on multi-feed stock technology. "So, we don't foresee any shortage for raw material in the future."

He said the trial runs of the oil in APSRTC (the State public transport utility) proved that it reduced pollution significantly and showed an increase of 2.6 per cent in mileage.

ISP division

Meanwhile, the company's ISP division had registered a turnover of Rs 3.20 crore for the first-half ended September 30, 2006, as against Rs 2.22 crore in the same period last year.

"We hope to achieve a turnover of Rs 16 crore for the financial year 2006-07, as the company expected significant contributions from its bio diesel division," Mr Satish said.

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