Bhubaneswar, Oct. 23: The government has started running some of its vehicles on bio-diesel on an experimental basis.

The state-run Orissa Renewable Energy Development Agency (Oreda) is producing the bio-fuel. Around 37 vehicles of the science and technology department are being run on bio-diesel, which is prepared from crude vegetable oil and different types of seeds.

Chief executive of Oreda Ajit Bhartuar said a plant has been installed in Bhubaneswar for the production of bio-diesel. At present, it has the capacity to produce 1,000 litres of bio-diesel per day. Fuel is being produced from over 30 types of vegetables and locally available flowers and fruits, including kusum and polanga.

The low-cost bio-diesel production unit has been designed and marketed by Electrocontrol, an Indore-based company. ?It can produce up to 1,800 litres per day and requires minimum power. It is compact and easy to handle,? said Nagesh Vyas of Electrocontrol.

Oreda now plans to produce bio-diesel on a large scale. To ensure enough availability of raw material for its plant, it is promoting the farming of the suitable flowers and fruits in different parts of the state. Cost of the bio-diesel has been kept at Rs 18 per litre, which may vary depending on the availability of raw material, said sources.