Our Bureau

Chennai, Dec. 20

THE programme to supply ethanol-doped petrol, gasohol, is finally picking up with sugar mills starting delivery to Indian Oil Corporation.

According to sugar industry sources, ethanol deliveries have commenced, but of the three oil marketing companies, IOC alone has started purchasing ethanol. Hopefully, the others will start soon, they said.

This is a major relief to the sugar mills in Tamil Nadu five units are involved in the programme with each of them having invested over Rs 5 crore in ethanol production at their distilleries, the sources said.

Dharani Sugars, Kothari Sugars, Thiru Arooran Sugars, Sakthi Sugars and Rajshree Sugars had bid for supplying ethanol to the oil companies.

Three oil companies IOC, BPCL and HPCL have contracted to buy about 1.85 crore litres of ethanol per year from the sugar mills. But only IOC has started picking up ethanol and it has placed orders for about two months' requirement. Sugar mill sources felt that it was only a matter of time before the other two oil companies start picking up ethanol.

(This article was published in the Business Line print edition dated December 21, 2005)
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