Tractor cos gear up to launch alternative fuel-based variants
http://www.thehindubusinessline.com/2008/06/29/sto [2008-7-21]
Tag : Distribution Equipement
Priyanka Vyas
New Delhi, June 28 The escalating fuel prices have led the tractorcompanies to explore the possibility of launching alternativefuel-based variants. Escorts is looking at launching a CNG-dieselbased tractor this year.
“We would be ready to launch a CNG-diesel and a bio dieselcompatible tractor by September-October this year,” said MrRohtash Mal, Executive Director and Chief Executive Officer,Escorts Agri Machinery Group.
The company said that despite bottlenecks in the fuelinfrastructure, there could be demand from villages in the easternpart of Rajasthan, Haryana, Punjab, which are located in proximityto cities and are well connected with CNG stations.
At the current level, the diesel costs around Rs 35 a litre and theprice of CNG is around 18. According to the industry estimates, thesaving incurred by the farmer on the operational cost of running atractor is expected to be in the range of 35-40 per cent.
Mahindra and Mahindra, with the largest share in the domestictractor market, has spoken of its intention to introducealternative range of tractors.
The company had said that it was testing the vehicles, after whichit would launch it on a commercial scale. Companies such asSonalika and TAFE (Tractors and Farm Equipement Ltd) have expressedthe availability of infrastructure in the remote areas a majorissue in their plans of going ahead with the new products.
“We are ready with a bio diesel range of tractors that can berun with 5 per cent blend of alternative fuel. Even as we weighalternative fuel options, the first issue that occurs is the lackof distribution network for CNG-powered tractors in rural India.While technically, the industry would be ready, practically itwould take a longer time for the sales of such tractors to takeoff,” said an official from TAFE.
On similar grounds, Mr L.D. Mittal, President, Sonalika Group ofcompanies, said, “We have no such plans to launch suchproducts as fuel availability remains a matter of concern.”
Priyanka Vyas
New Delhi, June 28 The escalating fuel prices have led the tractorcompanies to explore the possibility of launching alternativefuel-based variants. Escorts is looking at launching a CNG-dieselbased tractor this year.
“We would be ready to launch a CNG-diesel and a bio dieselcompatible tractor by September-October this year,” said MrRohtash Mal, Executive Director and Chief Executive Officer,Escorts Agri Machinery Group.
The company said that despite bottlenecks in the fuelinfrastructure, there could be demand from villages in the easternpart of Rajasthan, Haryana, Punjab, which are located in proximityto cities and are well connected with CNG stations.
At the current level, the diesel costs around Rs 35 a litre and theprice of CNG is around 18. According to the industry estimates, thesaving incurred by the farmer on the operational cost of running atractor is expected to be in the range of 35-40 per cent.
Mahindra and Mahindra, with the largest share in the domestictractor market, has spoken of its intention to introducealternative range of tractors.
The company had said that it was testing the vehicles, after whichit would launch it on a commercial scale. Companies such asSonalika and TAFE (Tractors and Farm Equipement Ltd) have expressedthe availability of infrastructure in the remote areas a majorissue in their plans of going ahead with the new products.
“We are ready with a bio diesel range of tractors that can berun with 5 per cent blend of alternative fuel. Even as we weighalternative fuel options, the first issue that occurs is the lackof distribution network for CNG-powered tractors in rural India.While technically, the industry would be ready, practically itwould take a longer time for the sales of such tractors to takeoff,” said an official from TAFE.
On similar grounds, Mr L.D. Mittal, President, Sonalika Group ofcompanies, said, “We have no such plans to launch suchproducts as fuel availability remains a matter of concern.”
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