“It is no more viable for us to use bio-fuel for buses as their prices have risen steeply compared to that of diesel,” said Subrao Patil, managing director, PMTCL. The project was to blend bio-diesel with diesel in ratio of 80:20 to be used in 100 buses. The trial runs had proved that the mileage of buses and pollution levels reduced by taking the green route.

“We had invited companies for supply of bio-diesel after the earlier contract with Garware Chemicals and Shirke Biochemicals expired, but could not accept any of the proposals due to high prices offered by them,” chief engineer Sunil Burse said.

The public transport company gets diesel at a price of Rs 35 per litre while the bio-diesel price quoted by all the seven companies participating in the bidding process was around Rs 43 per litre, he said, adding, “Thus, it was not possible for us to continue use of bio-diesel.”

Burse said one private company has come forward to supply bio-diesel at Rs 34 per litre to PMTCL but the product is being tested before use in buses.

The PMT had launched the project after completion of a successful trial run in July last year. It had predicted a monthly saving of Rs 1 crore by using bio-diesel in PMT buses.

The project was deemed feasible last year as the diesel prices had risen up to Rs 40 per litre and the bio-diesel prices were low, but the situation has now changed with diesel prices decreasing and bio-diesel prices increasing.

Sudhir Mishra, general manager, Garware Chemicals, said production of bio-diesel has adverse impact due to increase in raw material prices and bio-diesel cost has increased while diesel prices has gone down.

“The bio-diesel market is volatile and we have stopped production of bio-diesel for now. We will wait for the government policy on bio-diesel usage as then only it will stablise the market,” he said.

Though, the reports of bio-fuel usage in the vehicles are good, Anirudha Shirke of Shirke Biochemicals said the market for the product is not good now.