Impact of liquor ban - surplus molasses - Centre accepts Bihar's proposal for lifting 6 cr litre of ethnol for bleding with petrol scheme

NEW DELHI, : RECENTLY, Government of Bihar has announced a New Excise Policy, wherein total ban has been imposed on liquor. Government of Bihar had requested Ministry of Petroleum & Natural Gas to explore whether the oil companies would be able to lift the entire ethanol produced by the distilleries in Bihar.

The Central Government is keen to undertake developmental works more specifically for the agriculture sector in the State of Bihar. The proposal of Government of Bihar has been considered by
Ministry of Petroleum and Natural Gas in consultation with Oil Marketing Companies (OMCs). OMCs under MoP&NG have informed that about 6 crore litres of ethanol may be produced in Bihar through molasses route. OMCs will strive to absorb this ethanol for EBP to help the State of Bihar. This initiative is likely to give about Rs 300 crore to the farmers of the State through sugar mills / distilleries. This will also ensure proper utilization of molasses in the State.

The NDA Government is committed to promote alternate renewable source of energy such as Bio-ethanol and Bio-diesel which would reduce our dependency on import of crude oil, address growing environment issues and provide better remuneration to the farmers. As a step in this direction, Government of India is running Ethanol Blended Petrol (EBP) Programme in 21 States and 4 UTs with immediate target to achieve 10% ethanol blending in Petrol. In-order to support the Domestic Industry, Government has also decided to source ethanol from domestic sources only.

In the past, Ethanol supplies were enough to meet only 30% of the blending requirement. During the sugar year 2013-14 only 38 crore litres of ethanol could be supplied for EBP Programme. In-order to give a stimulus to this programme, Government in December'2014 enhanced the Ethanol procurement price and opened alternate route including Lignocelluloses route for Ethanol production. Oil Marketing Companies also eased the procurement process for the benefit of suppliers.

All these steps have helped in doubling the ethanol supplies during the Sugar Year 2014-15 wherein 67.42 crore litres have been supplied for blending in Petrol. This year OMCs have floated tender for 266 crore litres of ethanol procurement to meet 10% blending target. There is considerable improvement in the response from the Sugar Industry which has offered more than 135 crore litres for the current sugar year.

Other plans specifically for the State of Bihar include, capacity expansion of IOCL Barauni Refinery from 6 MMTPA to 9 MMTPA, up gradation of this refinery to produce BS-VI quality products, integration of this refinery to produce other value added options/specialty products and establishment of Petro-chemical complex at Begusarai, Bihar.