OMCs offer Rs 5.79 per litre incentive on maize-based ethanol
The Oil Marketing Companies (OMCs) in India have announced an additional incentive of Rs 5.79 per litre for ethanol sourced from maize on Thursday. This hike doesn’t include GST.
Following the increase in incentives, the price of maize-derived ethanol will see a rise from Rs 66.07 per litre to Rs 71.86 per litre.
The revised incentive rate is being applied instantly to all ethanol acquisitions made by Oil Marketing Companies from January 5, 2024. The new policy will remain effective throughout the Ethanol Supply Year (ESY) 2023-24.
On a related note, Petroleum Minister Hardeep Singh Puri announced on Wednesday that the number of E20 stations, offering ethanol-blended fuel, in India has exceeded 9,300. He also mentioned that the government is on track to complete the project by 2025.
Where India Stands Today
The Minister held that the ethanol blending programme directly benefited the distilleries and farmers of the country. The Minister announced that in the last 10 years, a payment of Rs.1,15,623 crore was made to the distillers by Oil Marketing Companies (OMCs). Similarly, Rs.69,374 crore were paid to the farmers between 2014 and 2023.
Puri stressed that Ethanol blending during ESY 2022-23 has saved approx. 509 crore litres of Petrol resulting in savings of more than Rs. 24,300 crore of foreign exchange and expeditious payment of about Rs.19,300 crore to farmers including net CO2 reduction of 108 lakh metric tonnes.
