New Delhi: The public sector oil marketing companies (OMCs) Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation and the sugar industry have been asked to resolve the issues affecting implementation of five per cent ethanol blended petrol (EBP) programme.
At a meeting convened by the Petroleum Minister, Mr. Murli Deora, of fuel marketing companies and sugar millers here on Friday to review the implementation of the EBP programme, it was submitted that the OMCs have got a poor response to the tender for sourcing ethanol for five per cent mandatory blending with petrol.
The companies were able to source only 40 per cent of the ethanol they tendered for earlier this fiscal.
Against the requirement of 68 crore litres this yar, tenders floated by OMCs received bids for only 40 per cent ethanol volumes, Mr. Deora told media persons.
The players concerned were asked to resolve the issues and if need be approach the Committee of Secretaries (CoS) looking into the issue.
While stating that the Government is committed to blending petrol with five per cent ethanol, the Petroleum Secretary, Mr. R.S. Pandey, said, The response to the tender has been very poor.
The Cabinet Committee on Economic Affairs on Thursday had reiterated its earlier decision of mandatory five per cent blending of ethanol with petrol and instructed the Petroleum Ministry and the OMCs for implementation of the decision. In 2006, the Government had mandated that ethanol should be blended in a five per cent ratio with petrol.
Subsequently, it stipulated that the amount of ethanol in petrol may be optionally ramped upto 10 percent from October 2007 and made it mandatory from October 2008.
However, the OMCs were finding it difficult to implement it due to ethanol supply constrains. While ruling out import of ethanol in case the supply was not domestically met, the Petroleum Secretary said, that the programme was made to help domestic farmers and so there is no question of importing ethanol.
-Bureau
THE HINDU BUSINESS LINE
14 Nov. 2009
