Beeda Mastan Rao Urges Centre to Retain Regional Ethanol Allocation Policy
He urged the Centre to allow surplus ethanol to be sold to the pharmaceutical, chemical and other industrial sectors
Nellore: Rajya Sabha member Beeda Mastan Rao Yadav on Wednesday urged the Centre to protect the ethanol industry, particularly in Andhra Pradesh and other southern states, while safeguarding consumer interests under the Ethanol Blended Petrol (EBP) programme.
Raising the issue during Zero Hour in the Rajya Sabha, the MP welcomed India's achievement of the 20 per cent ethanol blending (E20) target, saying it had strengthened energy security, reduced crude oil imports and carbon emissions, and enhanced farmers' incomes.
He, however, cautioned that the proposed pan-India ethanol allocation policy could adversely affect efficient ethanol units in southern states by reducing local procurement of maize and rice, thereby impacting farmers, rural economies and state revenues while increasing transportation costs.
Mastan Rao said several distilleries were facing financial stress as oil marketing companies (OMCs) were not procuring their full ethanol production. He urged the Centre to allow surplus ethanol to be sold to the pharmaceutical, chemical and other industrial sectors.
The MP also sought the immediate restoration of quarterly ethanol procurement tenders by OMCs, stating that new ethanol units had been unable to participate in the procurement process for nearly nine months, resulting in interest liabilities of ?2 crore to `3 crore a month.
He further urged the Centre to retain the existing region-based ethanol allocation policy, ensure priority for ethanol units in Andhra Pradesh, make fuel compatible with pre-2023 vehicles available, and undertake awareness campaigns on the use of E20 fuel.
