Moily asks OMCs to float fresh tender for ethanol procurement

In order to keep the much-hyped Ethanol Blending Programme (EBP) by the Centre on track, the ministry of petroleum and natural gas has asked the oil marketing companies to float another tender this month to meet the additional requirement of about 60 litres from suppliers.

The ministry had rejected bids by global players recently due to the exorbitant prices. Against a requirement of 100 crore litres ethanol per year, the OMCs have so far finalized procurement of around 40 crore litres of ethanol for next twelve months.

In order to put on track the decision by Cabinet Committee of Economic Affairs (CCEA) on November last year for 5% mandatory ethanol blended petrol programme, Moily asked oil marketing companies and  Indian Sugar Mills Association (ISMA) to make all efforts for expediting delivery of already procured quantity of ethanol, in a meeting last week.  

During the meeting, ISMA suggested that OMCs could procure the finalized quantity of 40 crore liters entirely in the next four months and fresh tender may be floated for the requirement of ethanol coinciding with next sugar season, which starts from October 2013.

The supply from new tender could be from the month of November 2013.