Central Institute of Agricultural Engineering, Nabibagh, Berasia Road, Bhopal, India

India, with a GDP of about USD 475 billion, is the fifth largest economy in the world. Seventy two percent of India's people live in rural areas and about 70% earn their livelihood from agriculture. India's rate of economic development is affected, as it needs to import about 70% of its petroleum demand. Wildly fluctuating world prices of oil have been a destabilising element for the country's balance of payments situation, particularly in recent times. The petroleum import bill is currently about 13 billion dollars (about 30% of total import bill) compared to the current trade deficit of about USD 11 billion. The current yearly consumption of diesel oil in India is approximately 40 million tonnes forming about 40% of the total petroleum product consumption. It is estimated that the demand of diesel in the country would rise to 52 thousand tones by 2006-07 and to 67 thousand tones by 2011-12 with simultaneous increase in consumption by the agriculture sector. India's developmental objectives base themselves on economic models that require a per capita consumption of fuel oil several fold higher than current Indian consumption levels. The environmental problems that might crop up from such increased fuel consumption also need to be taken into account. Present day concerns over the growing energy needs of a growing world population have shifted from limited fossil fuel supplies to climate change, air pollution, and inequity resulting from the lack of economic means to develop. Biodiesels can provide a suitable answer to address these issues. 

Key words:  Biodiesel, Jatropha, Production, energy