Oil marketing companies are likely to get a five year license in Andhra Pradesh to produce and procure ethanol to blend it with fuel.

Responding to requests made by the OMCs, State Chief Secretary IYR Krishna Rao on Wednesday assured a delegation of HPCL, IOCL, BPCL to issue license for Ethanol manufacturers for five years.

The Chief Secretary directed the Commissioner Excise Department to permit all Government owned OMCs to produce Ethanol without any interruption in the State.

Following the directions, provisional license would be issued immediately pending finalisation of License Fee. They were also told to chart out a plan of action to increase the blend from present 3 per cent to 5 per cent by this year end and 5 per cent to 10 per cent in the next two years.

Ethanol is used as a motor fuel, mainly as a bio-fuel additive for gasoline and cars. In some countries, cars are run using 100 per cent ethanol. The Central Government had taken a policy decision for implementation of ethanol blended petrol in the country.

According to the OMCs, ethanol blending is being done all over the country on the instructions of Ministry of Petroleum and Natural Gas. Currently, 5 per cent ethanol is being blended all across the country and 10 per cent in five states of UP, Maharashtra, Karnataka, Uttarakhand and Goa.

The OMCs expressed that Ethanol storage license for 2015-16 has not yet been renewed leading to stoppage of its procurement after expiry of licence. The current stocks of ethanol would get exhausted within a week and its blending would also stop. The delay was on account of non-finalisation of license fee.