OMCs issue tender to secure 66 crore litres of ethanol

According to the tender, bidders should specify the quantities of ethanol they can supply to OMCs, categorized by feedstock and broken down quarterly for the period from August 1, 2024, to October 31, 2024.

Oil Marketing Companies (OMCs) have invited bids for the supply of approximately 6.6 billion litres of Denatured Anhydrous Ethanol for the Ethanol Supply Year (ESY) 2023-24. Bidders are encouraged to propose ethanol production from various feedstocks including sugar cane juice, sugar, sugar syrup, B heavy molasses, C heavy molasses, damaged food grains, and maize.

According to the tender, bidders should specify the quantities of ethanol they can supply to OMCs, categorized by feedstock and broken down quarterly for the period from August 1, 2024, to October 31, 2024. The tender document says that the bids will remain valid until July 31, 2024.

The quantity bids for ESY 2023-24, covering the period from August 1, 2024, to October 31, 2024, are open to registered bidders in line with the long-term ethanol procurement policy. The allocated quantities from this Expression of Interest (EOI) will be procured at the rates published for ESY 2023-24, as determined by the Government of India (GOI) and OMCs.

The tender document stipulates that ethanol production from the specified feedstocks must be detailed in the quantity bid form. Bidders must offer their total ethanol quantity for each feedstock category for the respective period, ensuring that the combined quantity does not exceed their total licensed capacity.

The document also outlines the basic rates for ethanol procurement by OMCs for the specified period, with additional payments for transportation charges and GST. An incentive of Rs 6.87 per litre (excluding GST) will be provided for ethanol sourced from C-heavy molasses.

The government aims to achieve 20 percent ethanol-blended petrol by 2024-25.

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.

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