Nagpur News: The state government has approved the recommendations of mixing 10 percent ethanol in petrol being sold across petrol pumps in Maharashtra. The decision, to be implemented from March 1, was taken owing to the pressure from oil companies in view of spiraling crude oil prices in the international market. In India, the vast majority of ethanol is produced from sugarcane molasses, a by-product of sugar. The Sugar Producers Associations in the state have been demanding the rate of Rs 37 per litre of ethanol and also to allow the oil companies to use 10% ethanol in petrol.
At present about 20 states and 4 union territories across India permit 5 percent ethanol in petrol.
With the latest state government’s decision, Maharashtra has now become the only state to allow 10 percent ethanol in petrol.
An e-tender for supply of ethanol has also been posted on the website of Bharat Petroleum Corporation, which has invited ethanol producers to fulfill the demand. The requirement of 31.52 crore litres of ethanol for Maharashtra and 140.41 crore litres for rest of India has been put up in the e-tender. For Maharashtra, the usage is mentioned as 10 percent of net petrol concentration while 5 percent is applicable for the rest of India. The demand has been projected for a one year period.
In this regard, about 35 ethanol producers in the state have shown their interest to provide the material at Rs 37 per litre.