Southern States - Tamil Nadu   

Oil industry all set to revive launch of ethanol-blended petrol

By N. Ravi Kumar

CHENNAI March 11. The oil industry is set to `revive' the process of launching five per cent ethanol-blended petrol supplies in the State, inviting fresh bids from anhydrous ethanol manufacturers soon.

Keen on introducing the eco-friendly blend by June-end in the State, which also feeds the Union Territory of Pondicherry, the industry is planning to float the tender in mid-May. Unlike as last time when sugar millers complained that limited time was given to them for setting up the facilities, the tender timing is expected to be comfortable.

Still, the stakeholders are surprised at the time taken by the six distilleries to put up the facilities after having been granted licences by the State Government. Its role in facilitating early completion of the project is equally important, a point emphasised by the Minister of Petroleum and Natural Gas, Ram Naik, at a recent meeting at Nagapattinam.

An indicator of the oil industry confidence in meeting the revised launch date is the unlikely inclusion of a clause, found in the previous tender, stipulating that ethanol be imported from other States in the event of shortfall. ``Once the six facilities are commissioned, we would have adequate supply. Imports would entail, apart from the transportation cost, more investment for the oil companies in the ``inventory and the huge infrastructure'', a senior official in an oil company told The Hindu.

Moreover, the oil industry and sugar millers seem to have resolved the issue of pricing of anhydrous ethanol. According to sources, the sugar industry has agreed to supply the product at around Rs.19 a litre, down from Rs. 23 it quoted earlier.

Originally, Tamil Nadu and Pondicherry figured in the list of nine States and three Union Territories, where the five per cent ethanol-blended petrol was to be launched on January 1. The oil industry floated tenders late September inviting bids for supply of anhydrous ethanol. The launch, however, was deferred as the six-licensee mills sought more time.

Besides its eco-friendly qualities - less carcinogenic and more oxygen content - use of ethanol in petrol was perceived as a major benefit to sugarcane farmers.

The industry had estimated the approximate annual requirement of ethanol at about 48,648-kilo litres for the State. There are about 1,625 petrol bunks in the State and 34 retail outlets in Pondicherry. In Tamil Nadu, ethanol will be added to petrol at the oil terminals in Tuticorin, Kappalur (Madurai), Tiruchi, Sankari, Erode, Korukkupet, Tondiarpet, Irugur, Tirunelveli, Karur and Salem.

Printer friendly page  
Send this article to Friends by E-Mail

Southern States

News: Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts: Classifieds | Employment | Obituary |

Stories in this Section

• 'Package' to protect consumer interests
• MLAs, TV channels will face privilege motion
• Python caught in fishing net
• 229 cases of malpractice in Plus-Two exams
• Adoption agencies coming up in new districts also
• Teacher training in SSA methodology begins
• 'Look beyond politics for fiscal correction'
• Why not exempt judiciary from recruitment ban?
• Oil industry all set to revive launch of ethanol-blended petrol
• Sri Lanka frees 41 fishermen
• Poll for 368 local bodies' posts in April
• Terms of 3 inquiry commissions extended
• Why pass the buck to SERC, delta farmers ask Govt.
• Cut T&D losses: PMK
• Secular parties won't attend anti-POTA meet

Copyright © 2003, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu