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The public sector Oil Marketing Companies (OMCs) led by Indian Oil Corporation signed an MoU with Indian Sugar Mills Association (ISMA) for supply of ethanol to OMCs in order to implement ethanol blended petrol (EBP) programme. The MoU was signed here today by Dr. N.G. Kannan, Director (Marketing), IOC on behalf of OMCs and Ms. Rajshree Pathy, President, ISMA in the presence of Shri Mani Shankar Aiyar, Minister of Petroleum & Natural Gas.
As for MoU the OMCs will purchase ethanol meeting BIS specifications and the sugar manufacturers will supply full quantity of ethanol in accordance with terms and conditions entered with OMCs during the currency of the contract. The indigenous manufacturers would maintain uninterrupted supplies of ethanol to OMCs during the contracted period. Both the parties have agreed that in case of regional deficit in supply of ethanol the same can be purchased from other regions. OMCs will maintain adequate storage facilities at all blending stations to store regular receipts from suppliers.
Speaking on the occasion Shri Aiyar said that with the signing of MoU, it would be possible to actually implement programme for 5% ethanol blending with petrol in the States and UTs which have been notified by the government. As the availability of ethanol improves, the percentage of ethanol to be blended with petrol can enhanced to 10%. He said besides benefiting both petroleum & sugar industries, EBP Programme will bring environmental benefits with reduced emission as ethanol helps in better combustion. On this occasion representatives of Global Sugar Alliance from different countries like Australia, Brazil, Thailand, etc. were also present.
The Ministry of Petroleum & Natural Gas is committed to implement the ethanol-blended petrol (EBP) programme, which involves supply of 5% EBP in notified sugarcane producing States and adjoining areas. The oil marketing companies are sourcing indigenous ethanol in terms of programme parameters notified on 27.10.2004 making blending of ethanol at petrol mandatory subject to availability of ethanol with the reasonable price. The areas notified for implementation of EBP Programme are the States of Maharashtra, Gujarat, Goa, Uttar Pradesh, Uttaranchal, Haryana, Punjab, Karnataka, Andhra Pradesh (all districts except Chittoor & Nellore) & Tamil Nadu (only in districts of Coimbatore, Dindigul, Erode, Kanyakumari, Nilgiris, Ramanathanpuram, Tirunelveli, Tuticorin and Virudhunagar) and in the Union Territories of Daman & Diu, Dadra & Nagar Haveli and Chandigarh.
RCJ/IKC/ Mou – OMCs & ISMA (4.8.05)
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