Oil Marketing Companies (OMCs) have invited bids for supply of around 916 crore litres of Denatured Anhydrous Ethanol for ESY 2024-25.
The tender document mentions that bidders shall quote ethanol quantities in KL to be supplied by them against the requirement of OMCs, feedstock wise – quarter wise for the period of 1st November 2024 to 31st October 2025 in this quantity bid. The validity of bids will be till 31st July, 2025.
Quantity bids for the ESY 2024-25, period of 1st November 2024 – 31st October 2025 are being opened for registered bidders as per long term ethanol procurement policy.
The periods would be as under:
ESY Quarter 1 (Q1): November 2024, December 2024 & January 2025
ESY Quarter 2 (Q2): February 2025, March 2025 & April 2025
ESY Quarter 3 (Q3): May 2025, June 2025 & July 2025
ESY Quarter 4 (Q4): August 2025, September 2025 & October 2025
“Ethanol produced from different feed stocks namely Sugar Cane Juice, Sugar, Sugar Syrup/B Heavy Molasses/ C Heavy molasses /Damaged Food Grains/ Maize being procured by OMCs and same has been mentioned in quantity bid form. Bidders must offer their total quantity under the respective feedstock for the respective period. The total/combined quantity offered by the bidder for the ESY shall not exceed their total licensed production capacity,” the tender document reads.
“For ESY 2024-25, OMCs shall procure ethanol sourced from Sugarcane Juice/Sugar/Sugar Syrup, B-Heavy Molasses, C-Heavy Molasses, Damaged Food Grain and Maize at the prevailing rates for ESY 2023-24 (including incentive amount) till such time these rates are revised by OMCs / Govt. of India,” it further added.
The country has set target for a 20 per cent ethanol blending target by 2025. In August, ethanol blending in petrol reached 15.8 percent, and cumulative ethanol blending from November 2023 to August 2024 stood at 13.6 percent.
In order to achieve the target of 20% blending by 2025, about 1016 crore litres of ethanol is required and total requirement of ethanol including for other uses is 1350 crore litres. For this, about 1700 crore liters of ethanol producing capacity is required to be in place by 2025 considering plant operates at 80% efficiency.
As per DFPD, India’s ethanol production capacity has risen from 518 crore liters in 2017-18 to an impressive 1,623 crore liters in 2023-24 (As on 31st August 2024), demonstrating the government’s commitment to fostering a greener future.
Continue reading Chinimandi.com for more news about the Ethanol Industry.
