NEW DELHI, April 4 (UPI) -- India says it will launch on Thursday road shows to promote ethanol-blended petrol gasoline across the country.
"The Ministry of Petroleum and Natural Gas has begun implementing 5 percent ethanol-blended petrol program in selective zones countrywide," a ministry spokesman said.
He said high taxes on ethanol were a major problem for the smooth implementation of the program by retailing companies.
Petroleum and Natural Gas Minister Murli Deora will flag off the road show in southern Andhra Pradesh state Thursday. Two more road shows will be organized simultaneously in Delhi and Maharashtra states.
On Sept. 20, 2006, the government issued directives that, subject to commercial viability, oil marketing companies should sell 5 percent ethanol-blended petrol as per the Bureau of Indian Standard specifications in 20 notified states from Nov. 1, 2006.
The OMCs have complained that state governments have imposed several licensing and procedural requirements, levying a plethora of taxes and restricting interstate movement of industrial alcohol.
OMCs are allowed to buy ethanol from domestic sugar mills through open tender for a period of three years. The validity could be extended to another two years.
They have been buying 1,061.04 million liters of ethanol from sugar mills. The government says it requires 1,700 million liters for the next three years.
The industry has committed to supply only 75 percent of the total requirement. The government is looking for other resources to meet the remaining needs.
