Sugar mills of­fer record 113-cr litres of ethanol for blend­ing

The Hindu Business Line - - NEWS -

Pub­lic sec­tor oil mar­ket­ing com­pa­nies (OMCs) have ac­cepted bids from sugar mills and ethanol man­u­fac­tur­ers to sup­ply 113 crore litres of ethanol worth about ₹4,500 crore dur­ing the 2017-18 (De­cem­ber to Novem­ber) sea­son.

This was 70 per cent higher than the pre­vi­ous sea­son’s 66 crore litres, said In­dian Sugar Mills As­so­ci­a­tion (ISMA) on Thurs­day.

Though sugar mills and ethanol mak­ers sub­mit­ted bids for a to­tal quan­tity of 155 crore litres, the fi­nalised bids were only for 113 crore litres as some oil de­pots re­ceived pro­pos­als for more than 10 per cent per­mit­ted blend­ing and thus had to ac­cept bids in a pro­por­tion­ate man­ner, it said.

At 113 crore litres, this year’s pro­posed sup­ply tar­get is a tad bet­ter than the best ever ethanol sup­plies of 111 crore litres made in 2015-16, the ISMA said.

If In­dia has to blend the to­tal petrol con­sumed in the coun­try with 10 per cent ethanol, the to­tal bio­fuel re­quired is 313 crore litres.

The gov­ern­ment in Septem­ber an­nounced an ex-dis­tillery price of ₹40.85 for ev­ery litre of ethanol sup­plied un­der the ethanol blend­ing pro­gramme.

While sugar com­pa­nies and ethanol man­u­fac­tur­ers in UP would 44.3 crore litres of bio­fuel, those in Ma­ha­rash­tra have won con­tracts for 40.3 crore litres.

The apex body of sugar in­dus­try, how­ever, hoped that there would soon be a sec­ond ten­der for ethanol sup­ply, help­ing those with ex­cess ca­pac­ity and oth­ers to par­tic­i­pate.

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