The country's largest sugar refiner, Shree Renuka Sugars, today said it has received orders for the supply of 118 million litres of ethanol to oil marketing companies in five states for a period of one year.
"The company has received Letters of Intent for supply of 118 million litres of ethanol to the oil marketing companies (IOC, HPCL and BPCL) for states of Karnataka, Andhra Pradesh, Kerala, Goa and Maharashtra for a period of one year," Shree Renuka said in a communique to the stock exchange.
Shree Renuka has 4,000 tonnes per day of sugar refining capacity.
Cabinet had earlier cleared a programme for 5 per cent blending of ethanol with petrol and fixed the interim procurement price at Rs 27 a litre till a government-appointed expert committee evolves a mechanism to determine the price.
In order to implement the 5 per cent blending programme in the current year, oil marketing companies require 860 million litres of ethanol. However, the sugar industry has already committed to supply more than one billion litres in the current sugar year, starting October.
The excess supply could make the ethanol-blending programme a success this year, as there has always been a shortfall in availability of ethanol since its launch in 2006.
With cane production estimated to be higher this year, resulting in availability outstripping demand for sugar production, sugar-makers may find this an opportune year to produce ethanol.
