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India : Procurement of Ethanol by Oil Marketing Companies
Publish Date : 03-Mar-2016
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that the requirement of ethanol for 5 per cent blending with petrol is 133 crores litres and for 10 per cent blending 266 crore litres for the sugar year 2015-16. Against the tender floated, offers of 120 crore litres of ethanol have been received by Oil Marketing Companies (OMCs). One more Expression of Interest (EoI) has been floated to procure remaining quantity.
In order to improve the availability of ethanol, the Government has fixed the price of ethanol in the range of Rs. 48.50 to Rs. 49.50 per litre, on 10th December, 2014. Further, ethanol produced from other non-food feedstocks besides molasses, like cellulosic and ligno-cellulosic materials including petrochemical route, has also been allowed to be procured, subject to meeting the relevant BIS specifications.
In addition, the procurement process of ethanol has been simplified by OMCs.
Fixation of ethanol price based on distance, has encouraged movement of ethanol to longer distances, including States having lack of distilleries.
