First EOI for signing long-term agreement with upcoming dedicated Ethanol plants for supply of ethanol received an overwhelming response

New Delhi : The first Expression of Interest (EOI) for signing long-term agreement with upcoming dedicated Ethanol plants for supply of Ethanol has received an overwhelming response, with 197 bidders participating in the same. The EOI was published by BPCL on behalf of Oil Marketing Companies under the guidance of Ministry of Petroleum &Natural Gas on 27th August which opened on 17th September. The bids are currently under evaluation.

Thanking all the bidders for making the EOI successful and wishing them all the very best in their ventures,Union Minister of Petroleum and Natural Gas &Housing and Urban Affairs  Hardeep Singh Puri has said that this EOI is a proactive step taken by MoP&NG and Oil companies to motivate project proponents to set up ethanol production plants in ethanol deficit states, thereby paving the way forward for the  nation in achieving the ethanol blending target of 20% and more in the coming years.

173 Cr litre Ethanol was procured last year and 5%blending was achieved during ESY – 2019-20. The target for ongoing year ESY – 2020-21 is 325 Cr litre which will take the blending to 8.5%. Actual achievement during ESY – 2020-21 so far has been 243 Cr litre, accounting for 8.01% blending.

The Government has announced five different rates for Ethanol based on feedstock used for Ethanol production. The raw material and rates are as under:

Raw material Ex-mill price per lit
Sugarcane juice / sugar / sugar syrup ₹62.65
B molasses ₹57.61
C molasses ₹45.69
Damaged food Grains / Maize ₹51.55
Surplus rice with FCI ₹56.87

GST and Transportation charges are being paid extra. Besides, other incentives being provided for Ethanol production are: Long term visibility/Off take Assurance; Interest subvention Scheme for capacity addition; Differential remunerative price of ethanol; Relaxed EOI conditions/Reduced Bank Guarantee requirements and Penalty for non-supply; and Procurement priority within State boundary limits.

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