Mechanism for procurement of ethanol by Public Sector Oil Marketing Companies

The Cabinet Committee on Economic Affairs has approved the following, including fixing higher ethanol price derived from different sugarcane based raw materials under the Ethanol Blended Petrol (EBP) Programme for the forthcoming sugar season 2020-21 during Ethanol Supply Year (ESY) 2020-21 from 1st December 2020 to 30th November 2021.

Daily Current Affairs Quiz 2020

Key-Points

Earlier, there used to be one rate for ethanol but now there will be different prices.

The new Price fixed for Ethanol produced from sugar will be Rs. 62.65 per litre, ethanol manufactured from B heavy molasses will be Rs. 57.61 per litre and ethanol manufactured from C heavy molasses will be Rs. 45.69 per litre.

Additionally GST and transportation charges will also be payable.

Oil Marketing Companies have been advised to fix realistic transportation charges so that long distance transportation of ethanol is not disincentivised.

To offer fair opportunity to the localized industry within the State, Oil Marketing Companies shall decide the criteria for priority of ethanol from various sources taking in account various factors like cost of transportation, availability, etc.

Government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 10 per cent.

This programme has been extended to whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from 1st April, 2019 to promote the use of alternative and environment friendly fuels.