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The ethanol produced in sugar mills will strengthen the petroleum sector. In Maharashtra, 130 crore litre ethanol is produced by 73 sugar mills, and of the total ethanol produced, 69 crore litre ethanol will be directly supplied to Bharat Petroleum, Hindustan Petroleum and Indian Oil. This will fetch Ethanol producing factories Rs 3200 crore.
Sugar mills in the state are reeling under financial stress due to the falling market price of sugar and compulsion of paying FRP to cane growers.
After the central government’s nod to mix 10 per cent ethanol in petrol, 32 co-operative sugar mills and 40 private mills have started ethanol production units.
According to report published in a leading news website, as per production capacity, the agreement has been finalised to provide 42 crore litre ethanol to 11 depots of three petroleum companies in the state and supply 27 crore litre ethanol to oil depot in Madhya Pradesh, Gujarat, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu and Goa. This will aid in reducing the financial burden on sugar mills.
Market price of ethanol Rs 45 per litre
The ethanol is sold at Rs 45 per litre, the amount higher than what sugar is sold in the market. Since December 1, sugar mills from the state have provided 12.83 crore litre ethanol to oil depots in Maharashtra and 13.29 crore litre ethanol to other states. This has earned them Rs 1200 crore. Remaining ethanol will be supplied by December end.
India needs 259 crore litre ethanol
The government has permitted to blend 10 per cent ethanol in petrol imported in the country and to cater the demand there is a need for the production of 259 crore litre ethanol throughout the year, and Maharashtra is in the forefront to fulfil the requirement.
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