The alcohol-based chemical industry has urged the Centre to amend the IDR Act and extend its jurisdiction over industrial alcohol.
In its memorandum to the Union minister for chemicals & fertilisers, S S Barnala, the All India Alcohol Based Develop-ment Association (Aabida) president Ashok Kadakia has urged the need to suitable amendment the IDR Act so as to ensure that distilleries manufacturing industrial alcohol denature their entire produce of alcohol prior to its sale.
This is of paramount importance as large amount of rectified spirit is diverted for potable sector prior, says Kadakia.
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Besides, by virtue of falling under central jurisdiction, industrial alcohol would attract the uniform central excise duty and the state can levy only a regulatory fee on industrial alcohol, which the Supreme Court has decide as Re 0.10 per litre of alcohol towards its denaturation, says Kakadia
The chemical industry has further urged the Centre to recognise industrial alcohol as feedstock and equate it with raw materials like naphtha resulting in zero per cent import duty.