 "Tribunal's order to hit oil firms' blending plans")
In the order, the NGT said production should be stopped with immediate effect until distilleries receive relevant licences. “No manufacturer will produce absolute alcohol without seeking appropriate permission from the Ministry of Commerce, Chief Controller Explosives and other Authorities, in accordance with law,” said the order.
The order comes in response to a PIL filed by environmental NGO Social Action for Environment (SAFE), who referred to media reports showing 33 out of 35 distilleries manufacturing ethanol in Uttar Pradesh do not have the relevant licenses regarding storage of hazardous chemicals as well as recommended safety precautions.
When contacted, Indian Sugar Mills Association (ISMA) said the judgement is a setback for the sugar and ethanol industry. “It is going to adversely impact not only the industry on which several lakhs of workers and millions of farmers are dependent, but also the cane farmers whose payments will get delayed because massive quantity of ethanol and molasses will get stuck,” said Abinash Verma, ISMA DG. ISMA is the representative organization for sugar mills across the country.
The NGT has ruled the distilleries will have to abide by the Manufacture, Storage and Import of Hazardous Chemical Rules, 1989 and Chemical Accidents (Emergency Planning,
Preparedness and Response) Rules 1996 under the Environment (Protection) Act, 1986. Industry insiders said even the trucks used to transport the ethanol don’t have proper licences.
“The distilleries also do not have proper safety precautions in place to offset major accidents on site.” Salik Shafique, lawyer for SAFE said. He added that a labourer had been killed by an accident at a distillery in Uttar Pradesh, the country’s largest sugar producer. The application has dragged the state governments of major sugar producing states like Uttar Pradesh and Maharashtra to answer the lack of regulations for handling such cases.
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It has also questioned the Central Pollution Control Board and the Petroleum and Explosives Safety Organization for not strictly enforcing laws in this regard. Two weeks have been given for all the parties to reply.
To meet the 5% blending demand, the OMCs need 133 crores litres of ethanol and for the upcoming 10% blending, they would need 266 crore litres for the sugar year 2015-16 (October-September). Since grains-based ethanol is not allowed to be produced in India, OMCs remained fully dependent for its procurement from sugar mills for which the green fuel is a by-product. India also does not allow import of ethanol.
A government statement in March 2016 said against the tender floated, offers of 120 crore litres of ethanol have been received by OMCs. One more Expression of Interest (EoI) has been floated to procure remaining quantity, it said.
EBP kick-started in 2013 with the then government approving 5% blending with petrol to bring down oil import bill and promote greener fuel options. It is now after three years that the target would be met by the end of sugar year in September 2016.
No comment was received from IOC, the largest OMC till the time of going to print.
ISMA further said against the petition calling ethanol as a chemical, it is a green bio-fuel, which when blended with petrol reduces environmental pollution, which is currently plaguing the nation including the capital city of Delhi.
"We have full faith in NGT which we know is a protector of the environment and therefore are very hopeful that once we are able to produce the facts and figures before the Hon’ble Tribunal including about the green renewable biofuel and its benefits, some relief will be given to ensure that the ethanol blending programme is continued," said Verma.