Oil marketing companies (OMCs), Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) will collectively procure more than 335 crore litres of ethanol annually from upcoming manufacturing facilities across eight states and two Union Territories.

These plants are slated to start commercial operations in two years from the date of signing of the offtake agreement.

OMCs’  Ethanol Procurement Group (OEPG) intends to procure through a long-term off-take agreement with upcoming dedicated ethanol plants (DEP) in Tamil Nadu, Kerala, Andhra Pradesh, Telangana, Gujarat, Rajasthan, Goa and Odisha as well as Jammu & Kashmir and Ladakh to procure denatured anhydrous ethanol. For this, OEPG has floated an expression of interest (EoI) to invite bidders to enter into the offtake agreement.

PSUs other than IOCL, BPCL & HPCL, who intend to set up or are in the process of setting up DEP may apply through this EoI. Bidders who have set up the plant and have not started production willl also be eligible to apply.

The OMCs will procure the highest 87.22 crore litres annually from Rajasthan followed by Tamil Nadu (55.79 crore litres), Gujarat (48.99 crore litres), Andhra Pradesh (45.37 crore litres), Odisha (34.75 crore litres), Telangana (32.41 crore litres), Kerala (16.50 crore litres), Goa (7 crore litres) and collectively from J&K and Ladakh (9.65 crore litres).

The ethanol blending programme (EBP) aims to promote biofuels and reduce the import bill on crude oil. The OMCs are offering a price of Rs 56.28 per litre for ethanol made from C-Heavy Molasses, Rs 71.86 a litre for maize and Rs 64 per litre for ethanol made from damaged foodgrains.