Business Standard

Distilleries to make most of govt incentives by reviving idle capacity

Around a fourth of 2,750 mn litres of installed capacity remained idle so far, ethanol supply to boost by 0.5 billion litres

The state's sugar mills are idle for six to seven months a year, after cane crushing gets over
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The state's sugar mills are idle for six to seven months a year, after cane crushing gets over

Dilip Kumar Jha Mumbai
Barely a week after a sharp increase in ethanol procurement price, sugar mills have started approaching lenders to source working capital to revive idle distillation capacity installed years ago.

India has a total installed ethanol production capacity currently of 2,750 million litres. According to apex industry body, Indian Sugar Mills Association (ISMA), nearly a fourth of around 530 existing sugar mills have offered 2,002 million litres of ethanol supply to oil marketing companies (OMCs) against a requirement of 3,136 million litres for 10 per cent blending with petrol. Of the offered quantity, however, OMCs led by Bharat Petroleum Corporation Ltd

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