Ministry not for ethanol imports

The petroleum ministry was against the idea of importing ethanol and reducing import duty on ethanol from the current level of 10 per cent, said Prakash Naiknaware, managing director, Maharashtra State Co-operative Sugar Federation.

The ethanol blending programme will start from November 1 and oil marketing companies will purchase ethanol through the tender system.

Naiknaware, along with Maharashtra Chief Minister Vilasrao Deshmukh, met Union petroleum minister here to discuss the issues related to the ethanol blending programme.

The ministry, it is learnt, is also opposed to the idea of domestic companies setting up ethanol production units in countries such as Brazil. Companies like Bajaj Hindusthan are considering producing ethanol in Brazil.

However, many associated with the industry think producing ethanol outside will go against the interests of the domestic industry and farmers.

"We have an installed capacity of 1,200 million litres ethanol and will be able to supply the 587 million litre required for blending at the rate of 5 per cent," Naiknaware said.