The environmental degradation and the health hazards caused by the petroleum fuels needs a compelling research for the alternate energy source. This paper analysis the pongamia methyl ester (PME) as an alternate source of fuel for CI engines without making much changes in the existing engine technology and without causing much difficulties for the scientists and engineers. The study reveals the use of PME as either an alternate fuel or substitute for the diesel may definitely reduces the green house gases at the same time the employability in the agricultural field will be increased by retaining the migration of the farmer community towards cities or towns for search of employment. It was observed that the use of PME as fuel reduces carbon monoxide to an extent of 8.2% compared to diesel at the same time HC reduced by 8.9% also there is considerable reduction in oxides of nitrogen. There was increase in BSFC of 4.2% and the thermal efficiency reduced by 2.4%. But the environmental sustainability and the employability for local community and promotion of agriculture prefers the PME as an alternate fuel for the transport, agricultural and power sector. (C) 2017 Elsevier Ltd. All rights reserved.