PMO discusses clearing hurdles in ethanol blending programme

Keen to ensure success of ethanol blending in petrol, the Prime Minister's Office held parleys with the ministries of food and petroleum to clear bottlenecks to ensure adequate supplies so that the programme can be extended across the country.
Currently, petrol doped with five per cent ethanol is being supplied only at few locations due to unavailability of sugarcane extract. Also, pricing of ethanol particularly after the global oil rates have plunged to a four-year low has been an issue.
At present, it is compulsory to blend 5 per cent ethanol with petrol but the oil marketing companies (OMCs) are able to do around 2 per cent.

"The meeting deliberated on clearing barriers faced by OMCs as well as sugar mills. It discussed on ensuring adequate supply of ethanol for blending with petrol across the country," an official source said.
The PMO has directed the Petroleum Ministry to take steps to address all bottlenecks and ensure OMCs are able to use estimated 90-100 crore litres of ethanol available for blending in the country under the programme, the source said.
In the meeting, the source said that the PMO also took note of the cancellation of a recent tender floated by OMCs for purchase of ethanol due to the pricing issue.

OMCs are not keen to taken the burden of blending ethanol with petrol at a time when global oil prices are ruling lower.

"The Petroleum Ministry has been asked to ensure that the ethanol blending programme is implemented successfully irrespective of what global oil prices prevail. The programme has larger benefits and long-term impact," the source added.
For timely distribution of ethanol from sugar factories to oil depots, the Ministry has also been asked to consult state governments if single permit can be given to OMCs, the source added.
In the meeting, the Petroleum Ministry officials informed that OMCs are not able to blend as they do not have adequate storage facilities and are not keen to undertake transportation

of ethanol from one depot to another for blending purpose. OMCs are also finding ethanol price higher, the source said.
The Food Ministry officials said that sugar mills are not able to supply on time due to delay in getting excise permits. Mills are not very keen to supply due to lower prices offered by OMCs for ethanol. Sugar mills get higher realisation from selling portable alcohol.