Team News Riveting
New Delhi, September 18
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 and 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 and Housing and Urban Affairs Hardeep Singh Puri said that the EOI was a proactive step taken by ministry 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 per cent and more in the coming years.
In all, 173 crore litre Ethanol was procured last year and 5 per cent blending was achieved during ESY – 2019-20. The target for ongoing year ESY – 2020-21 is 325 crore litre which will take the blending to 8.5 per cent. Actual achievement during ESY – 2020-21 so far has been 243 crore litre, accounting for 8.01 per cent blending.
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.
