State-run oil marketing companies (OMCs) will procure more than 300 crore litres of ethanol from upcoming manufacturing facilities of the biofuel across eight states and two union territories.

OMCs Ethanol Procurement Group (OEPG) floated an expression of interest (EOI) to invite bidders to enter into a long-term off-take agreement with upcoming Dedicated Ethanol Plants (DEP) in Tamil Nadu, Kerala, Andhra Pradesh, Telangana, Gujarat, Rajasthan, Goa, Odisha and Union Territories of Jammu & Kashmir and Ladakh to procure denatured anhydrous ethanol.

The OMCs—Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL)—will collectively procure 301 crore litres of ethanol annually from plants that are slated to start commercial operations in two years from the signing of the off-take agreement.

The bidder needs to submit an affidavit undertaking that the proposed dedicated ethanol plant (DEP) shall be commissioned within 2 years from the date of issuance of the letter of intent (LoI).

Procurement plan

The OMCs will procure the highest 97 crore litres annually from Tamil Nadu followed by Kerala (55 crore litres), Rajasthan (44 crore litres), Gujarat (33 crore litres) and Andhra Pradesh (30 crore litres).

“Tripartite Agreement (TPA) shall be signed with the shortlisted bidders who have entered into Long Term Offtake Agreement and desiring to have TPA for availing finances from the banks /financial institutions,” the EoI document said.

Those project proponents, including PSUs other than IOCL, BPCL & HPCL, who intend to set up or are in the process of setting up DEP may apply through this EoI. Bidders who have set the plant and have not started production prior to the date of publication of this EoI shall also be eligible to apply.

Preference to maize

The OMCs have introduced a marking system in which preference has been given to corn/ maize.

For instance, use of feedstock such as corn/ maize or tapioca (including damaged corn/ maize/ tapioca) carries the highest 20 marks. Similarly, a combination of rice and corn/ maize, as well as damaged rice and corn/ maize, carries 15 marks.

Sugarcane based feedstock or combination of sugarcane-based feedstock with corn/ maize/ tapioca/ rice (including damaged corn/ maize/ tapioca/ rice) carries 10 marks.

A bidder of sugarcane based feedstocks has to supply from all three types of feedstocks—Sugarcane Juice/ sugar syrup/ sugar, B-Heavy and C-heavy molasses. The bidder also has to maintain supply throughout the year with adequate storage capacity in the plant.

With inputs from Prabhudatta Mishra.