Goa’s maiden ethanol project continues to wait for bidders

The state government of Goa has reaffirmed that it is considering manufacturing ethanol at the state’s only sugar factory through a Public Private Partnership (PPP) model. But the travesty is that there has been a low response from potential bidders for the project.

Agriculture Minister Ravi Naik informed the Assembly that a Request for Qualification (RFQ) application has been issued for the second time to shortlist qualified bidders for the redevelopment of the sugar factory. This also includes ethanol production on a PPP basis.

The application deadline was extended three times, and when the bid was finally opened on June 18, no bids were submitted.

The Central Government has been actively promoting the generation of fuel from agricultural products. Union Minister Nitin Gadkari mentioned that alternative fuel could be produced from rice straw, wheat straw, cotton straw, and used sugarcane waste. The sugarcane farmers in Goa were hopeful for more opportunities to sell their produce.

Established in 1972 in South Goa, the ‘Sanjivani Sahakari Sakhar Karkhana’ is the state’s only sugar factory. The Goa government decided to shut down its operations in 2020, leading local farmers to sell their produce to neighboring states.

The government of India plans to blend 20% ethanol in the petrol by 2025 to reduce the carbon emission levels and substitute imports. In may this year, the ethanol blending in petrol has crossed 15%. After re-assuming office as Minister of Petroleum and Natural Gas, Hardeep Singh Puri said that the government’s commitment to achieve 20% ethanol blending target.