Emami's Rs 150 crore bio-diesel facility in Haldia, West Bengal has been badly hit due to the Union Government's ban on the sale of bio-diesel.

Earlier, the company failed to sell the bio-diesel produced from the Haldia plant due to pricing differences and unfriendly regulations by the government on companies selling bio-diesel. The said plant has an installed capacity of 300 tpd of which the company had started supplying 90 tonne per month to Calcutta Tramways Corporation in February 2009. But, this has also come to a halt after the ban by the government. An additional amount of Rs 100 crore has been invested at the same facility for producing edible oil.

Besides, the company was planning to set up at least six bio-fuel dispensing stations at an investment of Rs 3 lakh each and had identified locations in Balasore in Orissa and at Haldia in West Bengal. But the Fire Brigade could not issue the mandatory clearance certificates as bio-diesel finds no mention in their manual.