AP Govt Mulls Guidelines in Sale of Surplus Ethanol for Industrial Use
Government plans safeguards to prevent diversion while easing surplus stock concerns
Vijayawada: The Andhra Pradesh government would frame guidelines to facilitate the sale of surplus ethanol exclusively for genuine industrial use while putting in place stringent safeguards to prevent its diversion for potable purposes.
The decision emerged from a meeting chaired by Excise Minister Kollu Ravindra with representatives of the ethanol manufacturers’ association at the state secretariat on Friday.
Principal Secretary Mukesh Meena said the government was committed to encouraging industrial growth while ensuring that “ethanol is utilised strictly for its intended purposes under a robust regulatory framework.” He assured the industry that suitable policy changes would be evolved to address genuine concerns without diluting regulatory safeguards.
Representatives of the ethanol manufacturers association informed the government that Andhra Pradesh has built significant ethanol production capacity. However, limited procurement by public sector Oil Marketing Companies (OMCs) under the Ethanol Blended Petrol (EBP) Programme has resulted in a build-up of surplus stocks.
This, they said, adversely affected the financial viability of ethanol manufacturing units across the state.
The association urged the government to permit the sale of excess ethanol to approved industrial consumers, including pharmaceutical, paint and chemical industries, as well as eligible private sector oil marketing companies.
It assured the government that all contractual commitments to public sector OMCs under the EBP programme would continue to be honoured in full.
Following detailed deliberations, Ravindra assured industry representatives that the government would examine the proposal and consider issuing appropriate guidelines to enable the sale of surplus ethanol solely for bona fide industrial applications.
Officials said the proposed policy framework would incorporate strict monitoring and compliance mechanisms to ensure that obligations under the EBP programme are met and that ethanol is not diverted or misused for potable purposes.
Commissioner of prohibition and excise, Chamakuri Sridhar, director of enforcement Rahuldev Sharma and other senior officials of the prohibition and excise department attended the meeting.
