Sugar industry, which has been trying to augment ethanol production to meet the requirement for fuel blending in the country, has made a case for working out a tripartite mechanism between sugar mills, oil marketing companies and banks so as to give a boost to the ethanol business of such mills.
The Indian Sugar Mills Association (ISMA) has already written to the Department of Food and Public Distribution to make this possible as a large number of mills are struggling to get credit for setting up ethanol production facilities.
Lack of credit facilities
Recently, the Union government decided to create an additional capacity for producing 600 crore litres of ethanol, over and above the current production as part of its push to produce cleaner fuel.
