Tender issued by OMC for supply of 124 crore liters of ethanol

31-Jan-2025 05:22 PM

The issuance of the tender by oil marketing companies (OMCs) for the supply of 124 crore liters of ethanol is an important step in the ongoing effort to meet the growing demand for ethanol under the Ethanol Blended Petrol (EBP) program.

By sourcing ethanol produced from C heavy molasses and rice provided by the Food Corporation of India (FCI) at a subsidized rate, the government is aiming to ensure cost-effective ethanol production and better control over the supply.

The focus on using C heavy molasses for the ethanol production, as well as the rice provided at Rs 2250 per quintal, highlights the government's emphasis on utilizing domestic resources and incentivizing ethanol production.

This is also in line with the Union Cabinet’s recent decision to increase the purchase price for ethanol derived from C heavy molasses.

Given the large quantities of ethanol being procured (930 crore liters so far), it’s clear that India is continuing to ramp up its efforts to meet the EBP targets, which would not only help reduce dependence on imported fuel but also contribute to the country's renewable energy goals.

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