Education, Innovation & Entrepreneurship is the Solution Mantra for Swadeshi and Sustainability: Dr Pramod Chaudhari, Praj Industries, Pioneer in Bio-Fuel Industry

Dr Pramod Chaudhari is the first generation tech-entrepreneur with an exemplary record of achievements. An alumnus of the Harvard business school, he is the first-ever Indian to be decorated with the prestigious George Washington Harvard 2020 award by the bio-impact Washington of the USA. He also holds the distinguished alumnus award and the distinguished service award by the IIT Mumbai. He was voted one among top 100 personalities in the bio-fuel space by the bio-fuel digest. He carries the bio-spectrum leadership award for his remarkable work in promoting the cause of bio-fuels. Dr Chaudhari holds prestigious posts in various academic and non-academic institutions. In the series on ‘Torchbearers of Atmanirbhar Bharat’, Organiser in collaboration with News Bharati presents the first interview of Dr Pramod Chaudhari of Praj Industries whose pioneering efforts have revolutionised the contours of the biofuel industry in India. Excerpts from his interview with Trupti Nayak:

Namaskar. This is a very long list and I think it is not really very important. What is the most important part is about the progress which Praj could achieve 35-year span in the area of industrial biotechnological space and I will be very happy to talk, discuss about it and learn in the process. Thank You very much for this opportunity.

Since you have said that we would go back and try to find out the genesis of R&D or the innovative approach of Praj, let me start from the beginning. I am basically a mechanical engineering and not a bio-technologist. So, I was always looking towards biotechnology, chemical sciences from ‘outside-in’ that always created some kind of curiosity. What I realised in the early time was that the biotechnology-related processes are dealing with lay organism and behave in a very irritating manner. To tame them and get a desired activity from their working is a challenging task and to achieve that part, I thought that I must have a proper backup that we can test and we can tame and they can work them with consistent performance. Along with that, we were working on Molasses as a feedstock. Perhaps it is the worst feedstock with a lot of contamination and muck in it. So to look into this and develop molasses converting to value-added products was the reason why we started a small R&D facility way back in 1989-90. This was basically not a research and development activity but an applied research or to do application engineering or we adopt various feedstocks required what parameters to be arrived at. That was the basic limited purpose. So that is where when you talk about TED was really running during the years of mid 1990s, which was engaged to applied research and they know something what we called as . We deploy the talented manpower, machinery and what we could afford at that time was going on. The next journey in the R&D side happened towards the end of 1990s, when the winds of biofuels, the use of bio-fuels like alcohol as ethanol into petrol started to catch up eyes all over the world.

I soon realised that this could come to India. In India, somewhere in 1999-2000, it became important when the Vajpayee government took cognisance of this prospective bio-fuel to be used along with petrol. That was a major turning point. I got myself prepared with Praj to convert Alcohol into Ethanol by dehydration, an important step for the generation of Ethanol. That became my Important milestone for Praj to enter into the ethanol industry. Again our R&D approach helped me. That’s why we had a bigger R&D shifted in Bauder, what you referred earlier as Bosli, where the plant was shifted in 2002. Dr Mashelkar ws personally there to inaugurate the next level of R&D at Praj house in Bauder.

The next point came in this ethanol blending measures of the Vajpayee government. they rightly name this as Swadeshi. Unfortunately, the government changed in 2004, the efforts we had put in, we could divert it to other developing countries namely South America, Columbia, Thailand and Philippines. There also our R&D approach played a part to make our processing technology robust for local requirements and that gave us a chance to look at the tropical belt, really a karmabhumi to introduce bio-fuels. From our Columbian experience, our next target was Europe and the USA and there with that experience, we could make a good impact. Since we belong to the UK’s first bio-fuel plant was based on our technology and it was a pride for all of our projects. Later we put out the largest project in Europe, i.e., at Halesite, generates 1.2 million litres per day. It was a collaboration with British petroleum.

That became another feather in the cap. We are able to meet those requirements that was a milestone, the best part was that in Praj employees are very particular that we select people from the vernacular background. That drew attention from a gentleman named Vinod Kofla. I don’t know whether you have heard that name and he after selling his stake became a venture capitalist supporting only green technology. He held the name of Praj and called from the USA. It was a call set for 15 minutes and we continued talking for more than an hour sharing my experience. We discussed what to do in India and all. I went to meet him at Kilo School of Management. He was there in the governing body of Kilos. He was just commenting that we Indians do only applied research, we don’t do basic research. He said, “you should look into that”. I said that I can do but I am deprived of funds. He told me that “I will give you funds”. It was a milestone in the history of Praj. This journey with Columbia, Europe and other places put together gave us good confidence, responsibility and recognition.

We know that India is importing 80 per cent crude oil and crude oil is the foreign exchange, dependence on middle-east and so many other countries. These government rightly decided to give a push to bio-fuels which was once called Swadeshi and making its more and more use can reduce dependence on Crude oil. Secondly, this is the home feedstocks (raw materials) so that the money gets circulated in the circular economy within the country. Farmers get benefitted instead the ‘Sheikhs’ of middle east out of self-reliance. Atmanirbhar is nothing but self-reliance, depend on our own fuels. The second aspect is getting the security – energies coming from internal sources and not from outside control. So that self-reliance and all this are done with the help of local technology. If you look at three things, Feedstock is local, technology is local and the product is going for the local consumption. So the value chain is a very important aspect in this Aatmanirbharta. That is why we proudly say that this is being the hallmark or the ethos of our working in this area. The other part is also the government’s so many programs are now becoming compatible with the way we are trying to do.

Another aspect is on sustainability or Shashwas Vikaas, i.e. the other aspect of development. We are able to fight the threats of climate change. I think it is important that the entire value chain for helping to establish sustainability. The third aspect which is another angle is that it is benefitting the average labourer or a small farmer because; they are part of the value chain. The concept which is being launched or consider is also ultimately helping the money which is coming by placing the oil and gets circulated in the local economy to the last link in the whole thing. We also look into the development of small farmers, entrepreneurs and entire thing contributing to the entire value chain. Last but not the least, that it is another angle of not creating an urban footprint. In normal cases Ethanol produced from farm goods, produced in the rural area, processed in the refinery and blended to petroleum.

These are the ways and means of all the taxation can be given concession that they can do it locally. So, this is the little bigger picture and it is also possible to see, unlike the oil refinery which is economical only with the size. Bigger is a profitable, bigger capacity. In our case, we talk about smaller capacities and smaller capacities decentralise. They can give you research and regional development- bigger the aspect of doing this rural India, starting with swadeshi way back in 2000 to Aatmanirbhar at the end of this decade. I think the journey clearly show that this shift is definitely beneficial to the country and to different strata of society. All three angles- this is the hallmark of sustainability- people, planet and profit. All three things happen. Three-P is the theme. I am happy that Praj is contributing to the journey. In the past 4-5 years, we have seen that the current government has pushed this kind of an approach. In front of the first thing that happened in the biotechnology was that it was changed to MOP. The most important strategic move of this government was their decision to impose bio-fuels in the system. It is not imposed on them and they are practically managing the oil marketing company like the big corporate. Both put together, I think it was clearly a masterstroke.

Administrative ministry taking initiates to that why we see that 2016 they had the first bio-fuel day in India. In 2018 they declared the bio-fuel policy covering both the liquid biofuels and gracious bio-fuels. In the last two years, there are a number of and that has prompted us to rise to the occasion and what we call as the bio-mobility as the concept which is our own generation’s concept, which considers 7 types of biofuels. Biogas, which is the gaseous bio-fuel and the other being working bio-methanol and aviation fuel. Practically the entire gambit is covered in this area. I think in the whole world we are the only company which is in the entire angle. We also will gradually go and take up what is called as the bio-hydrogen. Because in our strong opinion EV runs on a thermal core plant electricity is not environmental friendly. See EV is being talked about on different forums. EV solar energy- fine it is totally green. But EV which is charged power coming from thermal power plant is shifting the urban pollution to rural pollution. The same kind of carbon is being emitted by thermal power plants. So, it has to be totally neutral to this kind of. So we feel that we go with bio-fuels or bio-hydrogen. Today the seven fuel that we have identified. I am sure that this journey will continue like this, with the same charge and we are inspired by the present government.

There are two value chains. One is our business cycle value chain where we say that stock, processing with the help of technological solution engineering designs, equipment manufacture and project management. This become one value chain and Praj is offering end to end solutions. Very year, unless it is integrated properly the customer the project owner gets benefitted fully. This is one approach. The second approach is feedstock which is nothing but agry-products. In this area, if the farmer has to be an integral part value chain. But today if you look at the problem in Punjab and Haryana of stubble burning, there the farmer has to be educated and the farmer has the stop the crop burning. If it is collected, aggregated and send to a bio-refinery, you will get extra value to the stubble otherwise is it is zero. Another aspect is that the industry is dominated by sugarcane crops. Sugarcanes require a lot of water. It is a lazy crop and can be made only once a year. We are looking at alternative crops. We have done research on ‘Sweet swargam’ which is a kind of jowar but not the same thing. Its top holds a lot of sugary juice and can be used for making ethanol. The best part is that it is a 4-month crop. So, we can make more than 2 crops a year. The same piece of land you can create higher output in a shorter cycle. I consider this as a concept which is that, per square meter of land where the land is a limited resource, we can’t create more land. We got year as the measurement that should produce maximum alcohol per year. In case of sugar cane, suppose one sq metre is producing 15 litres of alcohol per year. Sweet Swargam which is like 2 and half-cycle per year can produce 75 litres per year taking less water. Only thing is that because of this frequent harvesting what I said is farmer has to be little alert. Tatas came forward and made an Ethanol distillery based on Sweet swargam. Farmer psyche they couldn’t influence. We then realised that dealing with the farming community is the different ball game. To answer your question, efforts are there, but to rope them in to make them have a sustained interest, education and awareness. I also tried at Praj growing under ideal conditions.

It is a mixture of so many things. You know one comment covering all the aspects. The first time, couple of times, I have touched the bottom and come out, so, business adventure yes! Like, in the early stages to establish ourselves where to make contract with the entire payment subject to final approval by the client. For that was a big blunder I did at that point, I won’t do it now. That time I did it, because I wanted an entry to the industry. We came to some extent, but did not come fully try to look for funding. I trembled upon venture capital; we were the first company to get venture capital. From ICICI those days so, any challenge turning to any kind of opportunity. I am a robust opportunist, always from positive thinking and optimism has helped me. Probably in every 10-year cycle you get some jhadka. It becomes like a formula. There we learn out of this. From 2008-9 when there was a supply crisis we were pretty ready to sustain a supply short and the simple logic which I tell to young entrepreneurs, “Cash is the king”. If you don’t have cash in your pocket, the world will not entertain you. I can tell you from the last 18 years we are a debt free company.

These are the subjects of my likings. Like the subject, every subject ultimately gets connected. In rural areas, where I like to see their quality of life is increasing. I have done education projects, water projects and circular economy among smaller farmer. In one project we are doing by making people to grow vegetables in the backyard by using the wastewater in households. Those vegetables are improving the health of women in rural areas. One small thing we need is we give them iron utensils. There are a lack of iron content. In a Vanvasi Taluka, we developed new recipients from wild vegetables by putting a competition among them. These are small-small things but they contribute to society. This is the CSR activates we do.

There is a theory that I follow. I call it the 9 box greed. For any country or a society, there are three things: Scarcity, Security and Skillability. In India, we have all these 3 challenges. Security from water and oil, regarding scarcity we face a lot of problems and coming to Skillability we have 1.3 billion people. On the other side, have to maintain sustainability. We can’t address there challenges by allowing sustainability to suffer. We have to take care of environment, people, society and reasonable economic system without a lot of disparity among people. These are the three reference points that we have to look into. There are also three things that play as a solution to this matrix. The first solution is education, followed by innovation and the third one is entrepreneurship. That is the way I look this as a solution.

This could be a mantra for the youth of India. Not just for the youth, but for the nation and its entire people. You are the right people to take it forward.