• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

The Minister for Petroleum and Natural Gas, Mr Mani Shankar Aiyar, and the President of the Indian Sugar Mills' Association, Ms Rajshree Pathy, in the Capital on Friday. - Kamal Narang

New Delhi , May 27

OIL marketing companies and the Indian Sugar Mills' Association (ISMA) will sign an agreement next month for supply of ethanol blended petrol in 10 States including Tamil Nadu, Andhra Pradesh, Gujarat, Uttar Pradesh, Maharashtra and four Union Territories from July.

The Ministry of Petroleum and Natural Gas is committed to implementing the ethanol-blended petrol (EBP) programme for which the indigenous ethanol suppliers and the oil marketing companies are equal partners.

The Ministry of Petroleum had met the ethanol manufacturers two months ago where it was agreed that ISMA, on behalf of ethanol suppliers, and the Ministry, on behalf of the oil marketing companies, would work on a draft MoU for long-term supply of ethanol by the sugar industry for the EBP programme.

"We have been in negotiation with ISMA about giving real life to our ethanol blended programme.

"We have been very seriously working on a system that will provide for sustained alternative fuels," the Petroleum Minister, Mr Mani Shankar Aiyar, told newspersons here.

The oil marketing companies have separately invited tenders for sourcing indigenous ethanol and negotiations are on.

The Additional Secretary in the Petroleum Ministry, Mr M.S. Srinivasan, said the technical, administrative and logistical issues have been sorted out.

"We are ready to roll out the programme in 10 States and four Union Territories immediately."

ISMA members will now quote a price in tenders issued by oil marketing companies for sourcing of ethanol, after which the two sides will sign a memorandum of understanding.

"All impediments and bottlenecks have been removed. We have arrived at definite arrangements and you will see the ethanol-blended programme roll out smoothly in two weeks' time.

"We have made long-term arrangements," Mr Srinivasan said.

He said 3.6 lakh kilolitre (kl) of ethanol was needed for doping five per cent ethanol in petrol in ten States and for the programme to spread to all over the country, 0.5 million kl ethanol was needed.

For doping 10 per cent ethanol in petrol, 1 million kl ethanol was needed.

"All the details have been worked out on the price and supply issues, including some problems with the State Governments, which fear impact on industrial supplies of ethanol," said the ISMA President, Ms Rajshree Pathy.

In a related move, an ISMA delegation met the Prime Minister, Dr Manmohan Singh, on Thursday. The delegation sought the Prime Minister's intervention to ensure that the programme of doping of ethanol was restarted.

"We have asked our members to bid at the lowest possible ex-factory price," said the Director-General of ISMA, Mr S.L. Jain.

Sugar output to touch 17.5 mt

According to Mr Jain, India's sugar output in 2005-06 (October-September) is expected to touch 17.5-18.2 million tonnes.

"If the monsoon is good, it will be 18.2 mt. If it is bad, it will be 17.5 mt," Mr Jain said.

Sugar production in the current year is likely to be a little less than 13 mt, he said, adding India's imports of raw sugar would be negligible next year compared with 1.2-1.3 mt this year.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Airports revamp: More time for bidders to name partners

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line