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In a meeting of the Ministry of Petroleum and Natural Gas with the ethanol industry and the oil marketing companies on 16.3.2005, the industry has assured the Ministry and OMCs that they are in a position to maintain a sustained supply of the required quantities of ethanol. A memorandum of Understanding in this regard is under preparation.
Since late 2003 and in 2004, the availability of ethanol has been scarce and erratic in the States of Maharashtra, Goa, Gujarat, Karnataka and Andhra Pradesh. The price of ethanol also rose significantly at all locations.
After discussions with State Governments, the Government has notified vide GSR 705 (E) dated 27.10.2004 that five percent ethanol-blended petrol, as per Bureau of Indian Standard specification, shall be sold in notified States and Union Territories if the price of sourcing indigenous ethanol for supply of ethanol-blended petrol is comparable to the price of indigenous ethanol for alternative uses and the delivery price of ethanol at the location is comparable to the import parity price of petrol at that location. This was also stipulated that indigenous ethanol industry should be able to maintain the availability of ethanol for ethanol-blended petrol at such prices. The oil marketing companies (OMCs) have invited tenders and, prima-facie, the response of the ethanol industry has been encouraging.
Above information was given by Shri Mani Shankar Aiyar, Minister of Petroleum & Natural Gas and Panchayati Raj in a written reply in the Rajya Sabha today.
RCJ /VK/ethanol(22.3.05)
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