Bihar plans to allow ethanol supply to non-petroleum industries outside the state
The Bihar government plans to permit denatured ethanol produced in the state to be supplied to industries outside Bihar for non-fuel uses. The move aims to ease pressure on ethanol producers facing limited procurement by oil marketing companies while creating additional demand that could benefit farmers.
Patna: The Bihar government is set to allow ethanol produced in the state to be supplied to industries outside Bihar for uses other than blending with petrol, following a request from the Industries Department.
The Prohibition, Excise and Registration Department has prepared a Standard Operating Procedure (SOP) for permitting the movement of ethanol outside the state. The proposal has been sent to the Finance Department for approval and will be placed before the state Cabinet after receiving its clearance, Jagran reported.
According to departmental officials, ethanol produced in Bihar will be allowed to leave the state only after 12 denaturing components are mixed into it. This measure is aimed at ensuring that the ethanol cannot be used for the manufacture of liquor.
The decision is expected to benefit ethanol producers by expanding their market beyond petroleum companies. Officials said the move is also likely to support farmers by creating additional demand for ethanol production.
The proposal comes at a time when ethanol production in Bihar has slowed because the allocation of ethanol to petroleum companies is lower than the state’s production capacity. The limited procurement by oil marketing companies has put several ethanol plants under financial pressure.
In view of the situation, the Industries Department had requested the Prohibition Department to permit ethanol supplies to other industries outside the state.
Bihar has prohibited the transport of ethanol without denaturing agents since the state implemented prohibition in April 2016. Under the proposed policy, ethanol can be transported outside the state only after it has been denatured in accordance with the prescribed procedure.
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Source : ChiniMandi
