OMCs reluctant to sign EOI with ethanol manufacturers

Reluctance of the oil marketing companies (OMCs) to sign expression of interest (EOI) with ethanol manufacturers might put a spanner on the Centre’s ambitious plan for achieving 20 per cent fuel blending by 2020. The reluctance has stopped ethanol manufacturers – both sugar mills and grain-based – in accessing bank loans in time to start their project.

Ethanol – the fuel additive – is promoted by the Central government as a solution to excess sugar produced and in reducing fuel imports. Mills produce ethanol as a by product of sugar production, while standalone units can also produce the same from fermenting damaged grains or crop stubble.