Potential of jatropha bio-fuel: An emerging agribusiness opportunity

India, like other developing countries faces the complex challenge of pursuing economic growth, meeting growing energy needs and environmental protection. Globally, bio-diesel is emerging as an environment-friendly alternative fuel for meeting the energy requirements in a sustainable manner. The potential economic and environmental benefits of jatropha for biodiesel production have driven the Indian Government to adopt programmes to increase supply of feedstock and utilization of bio-diesel. This paper has analyzed India's initiatives for promotion of jatropha as feedstock for biodiesel production as an alternative energy source and has evaluated opportunities and critical gaps across different components of supply chain that impede its sustainable progression. The paper has suggested some critical interventions required on technological, policy and institutional aspects to place the bio-diesel industry on a rapid growth track. It has concluded that the future of bio-diesel industry depends on the accelerated diffusion of new technologies, especially in the rural India, with an appropriate and marketfriendly regulatory environment.