New Delhi, July 25:
The public sector oil marketing companies (OMCs) have gone ahead and issued advance tender to procure ethanol for the next sugar season starting October, even as the procurement process for the mandatory five per cent blending with petrol for this season is yet to be completed.
Terming it as advance planning, the OMCs led by Bharat Petroleum Corporation (BPCL), Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation (HPC) have come out with a tender this week to procure 133.24 crore litres of ethanol from December 2013 to November 2014.
The bids for the tender will be opened on August 19.
Ethanol requirement of IOC is estimated at 58.81 crore litres, followed by BPCL at 38.10 crore litres and HPC at 36.32 crore litres for the next season.
The fresh tender to procure ethanol is for all States across the country, except for Uttar Pradesh where it would be applicable between June and November 2014 as supplies for the earlier period have already been committed, sources said. This is because sufficient supply commitments from the State are available, an oil company official said.
While the latest advance tender could possibly ensure ethanol off-take for the next sugarcane season and may help stabilise the supplies for the mandatory five per cent blending with petrol, it is the delay in order placement for the current season that has made the sugar millers jittery.
The sugar millers are already reeling under the impact of the bearish sentiment on ample supplies and weak global prices.
The delay in placement of orders is despite Petroleum Minister M. Veerappa Moily’s recent direction to the OMCs to take all measures to expedite the delivery of already committed supplies. However, sources maintained that respective OMCs were in the process of placing orders.
As against a requirement of 100 crore litres, the OMCs have so far finalised procurement of around 40 crore litres. To meet the balance, the OMCs are expected to float another tender soon.
The Government had on January 2 notified the mandatory five per cent blending of ethanol with petrol to be achieved by June 30. But the delay in procurement has impacted the process further.