Proposal being vetted by Attorney General, LawMin yet to take a view.
The Ministry of Food and Consumer Affairs is considering the direct manufacture of ethanol from sugarcane on a standalone basis and not only as a by-product of sugar manufacturing. The proposal has been forwarded to the law ministry for its views as it would require the amendment of the sugar control order under Section 3 of the Essential Commodities Act.
“The proposal was initiated by the government of Bihar, which has tied up several projects for the direct manufacture of ethanol from sugarcane. Bihar is laying emphasis on the development of agro-based industries for its own economic development after much of the mineral resources have come under the domain of the newly formed state of Jharkhand,” said an official source.
At present, the direct manufacture of ethanol is not allowed in India but only as a by-product during sugar production.
The law ministry is of the view that the proposal could be considered under separate provisions and not under the sugar control order which is governed by the Essential Commodities Act and regulates the manufacturing, marketing, and distribution of sugar. Ethanol is not an essential commodity and even if it is to be manufactured as a controlled commodity, it cannot be accommodated under the sugar control order, sources say. “It would require the amendment of the Essential Commodities Act. When ethanol is not an essential commodity, it cannot be included directly under the sugar control order, which is a subordinate legislation under the Essential Commodities Act. The ambit of a subordinate legislation cannot be widened by amendment when the parent legislation does not provide for the same. Thus, ethanol production directly from sugarcane is out of the ambit of the sugar control order,” said sources close to the development.
The law ministry has also cited Article 47 of the constitution, which pertains to the duty of the states to raise the standard of living and nutrition level of its subjects. “Provisions of Article 47 have to be considered before amending the Essential Commodities Act to include ethanol even as a controlled commodity,” sources said.
The law ministry has not sent its views to the food ministry and has sought the opinion of the Attorney General of India on the issue.
The Prime Minister’s Economic Advisory Council ( PMEAC) has ruled against the direct manufacture of ethanol from sugarcane, citing concerns over food security, which is the primary responsibility of the Essential Commodities Act, sources said.
Currently, the proposal is being vetted by the Attorney General of India.
India currently has 122 odd plants manufacturing ethanol as a by-product, having a capacity of around 1.2 billion litres per annum. Of the 120 units, 71 are in Maharashtra, 12 in Gujarat, six in Andhra Pradesh, five in Tamil Nadu, 14 in Uttar Pradesh and 10 in other states.
