NEW DELHI, Sept. 6 (UPI) -- The Indian government has said it is unlikely to meet the October deadline for the supply of 5 percent ethanol-blended fuel.
With oil marketing companies Indian Oil Corp., Bharat Petroleum and Hindustan Petroleum still waiting for the Petroleum and Natural Gas Ministry's final approval before issuing tenders to procure ethanol from sugar manufacturers, the blended fuel may not hit the market before November, The Business Standard newspaper reported Wednesday.
Following the failure of negotiations with sugar manufacturers on the price of ethanol, the ministry had issued directions to the oil marketing companies to tender for ethanol procurement.
Unlike last year when the price was fixed, this year the tender will specify a cap on the price at which the oil marketing companies may buy ethanol, the oil industry has indicated.
It said discussions are on with the ministry regarding the maximum price at which ethanol may be procured. The ministry's final decision is expected within a week.
"As soon as we get the ministry's nod, we will issue the tender for procuring ethanol. All the work at our end has been completed," said a senior official at Hindustan Petroleum.
The remaining two oil marketing companies also said that once the ministry's final permission comes the tender will be issued and all efforts will be made to meet the October deadline for ethanol blending.
At 5 percent blending, the requirement for ethanol will be to the tune of 587 million liters, while the Indian sugar industry has an installed ethanol capacity of 1,300 million liters.
