• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureaus

Coimbatore/New Delhi , March 21

THE Government has reassured ethanol producers its long-term commitment to the gasohol-blending programme.

The Government's move to promote ethanol as a mixed fuel follows the instructions issued by the Union Minister for Petroleum and Natural Gas, Mr Mani Shankar Aiyar, to oil companies for finalising the tenders within two to three weeks and resume ethanol blending.

The Indian Sugar Mills Association (ISMA) has been identified as the nodal institution for formulating the action plan for promoting ethanol as a mixed fuel.

The ISMA President, Ms Rajshree Pathy, told Business Line the association would, on behalf of the sugar industry, liaise with the Ministry to work out the modalities on various issues, including treatment of ethanol as an oxygenate, besides being a mixed fuel. "A common agenda would be drawn up after consultation and detailed discussions with other concerned institutions such as the National Federation of Cooperative Sugar Factories, Ethanol manufacturers and the All India Distillers' Association on the one side and the Petroleum Ministry on the other,' she said.

Ms Pathy said this development would help the sugarcane farmers and also focus on a better and clean environment.

The Minister, while admitting the delay in implementation of the ethanol programme and its limitation within a few regions, had stated that this was due to inadequate availability of ethanol, because of the sharp decline in sugar and sugarcane production in the last two years. He, however, reassured that this commitment to ethanol-blending was in keeping with the policy prevailing in most progressive economies of the world.

On future requirement of ethanol, Ms Pathy said the sugarcane and sugar production levels were slated to reach normal production levels of 18 million tonnes during the next sugar year. "The industry would be in a position to meet the demand of ethanol for mixing with petrol, after providing for the liquor and chemical sectors," she added.

Ethanol production has been estimated at 1,700 million litres (mnl) in the coming year. The needs of the potable and chemical sectors has hovered around 1,200 mnl leaving a balance of 500 mnl, sufficient for five per cent doping with petrol. Currently, nine States and four Union Territories undertake ethanol doping and the requirement has been limited to only 345 mnl.

This decision would help sugar factories with ethanol capacities in generating additional revenue, in paying higher cane prices to the cane growers in the coming years, the ISMA President said.

The industry has invested Rs 600 crore in ethanol capacity building and this, according to Ms Pathy, has been lying idle during the past year.

She added that all successful global ethanol programmes including that in Brazil had begun with the Government support. In Brazil, the ad-mixture has since been increased to 25 per cent, she said, and pointed out that the US was the single largest consumer of ethanol today.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Dry weather prevails in Kerala

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line