NIZAMABAD: The palm oil based biodiesel unit, Renjarla Energy Pvt Ltd., utilising automotive technology has been facing significant challenges in sourcing raw materials from various places, hindering production continuity. Due to this, entrepreneurs are unable to continue production and increase their business as per market demand.

In a bid to promote biodiesel and reduce dependence on petroleum products, the Union government has permitted a 20 percent mix of biodiesel in diesel. Therefore, companies and organisations have come forward to procure biodiesel, leading to increased demand nationwide.

A few years ago, Renjarlla Ramulu, an entrepreneur from Nizamabad, established the Renjarla unit, investing around Rs 5.5 crore, with a production target of 10 tonnes per day. This is the first biodiesel production unit with nanotechnology.

The businessman highlighted that while they previously had an agreement with an Indonesian organisation to import palm oil, the Union government’s ban on palm oil imports due to the Ukraine-Russia war has forced them from sourcing raw materials from Karnataka, Kerala, Andhra Pradesh, Gujarat and other states, significantly increasing costs.