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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