Bihar : Ethanol producers seek govt support as industry faces crisis
Ethanol producers in Bihar have urged the state government to intervene as oil marketing companies cut ethanol procurement by nearly half. The industry seeks policy support, vehicle subsidies, permission to produce extra neutral alcohol, and a 30% capital subsidy to ease financial stress.
Patna: Ethanol producers in the state have appealed to the state government for urgent intervention to protect ethanol companies facing a serious downturn. A delegation submitted a memorandum to Chief Secretary Pratyay Amrit and Industries Secretary Kundan Kumar, urging steps to prevent further damage to the sector, reports Live Hindustan.
Hemant Kumar Das of Naturals Dairy said the ethanol industry is currently going through a difficult phase. He said that despite existing agreements, oil marketing companies have cut their procurement from ethanol factories in the state by nearly half, forcing producers to reduce output.
He said the state government should raise the issue with the central government so that oil companies are directed to purchase ethanol in line with earlier agreements. He also said the state government needs to take initiatives at its own level to support and stabilise the sector.
Producers said partial changes to the current policy are necessary to protect the industry. They demanded that vehicles running on ethanol should be given subsidies similar to those provided for electric vehicles. They also called for permission to allow ethanol factories to produce extra neutral alcohol for supply to other states.
They further demanded a 30% capital subsidy for the ethanol sector, saying such support is crucial to help companies meet bank loan repayments and ease the financial strain on the industry.
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Source : Chinimandi
