The Hindu : Ethanol-mixed petrol launch now set for April 15

Online edition of India's National Newspaper
Friday, Mar 26, 2004

Tamil Nadu

Tamil Nadu - Chennai

Ethanol-mixed petrol launch now set for April 15

By N. Ravi Kumar

CHENNAI, MARCH 25. The launch of ethanol-mixed petrol in Tamil Nadu, which has missed deadlines since January 2003, is now set for April 15.

The eco-friendly fuel is, however, likely to be introduced only in a few districts, as the State Government has decided to cap the supply of ethanol to oil companies at 20,000 kilolitres in 2004-05.

With the quantity assured not even 50 per cent of the estimated ethanol requirement of 48,648 kl for Tamil Nadu and Pondicherry, oil companies are identifying districts where the product can be launched.

Chennai and a few other northern districts with relatively high levels of petrol consumption, besides Pondicherry, are unlikely to figure in the list of places where five per cent ethanol-mixed petrol will be introduced. The Union Territory depends on the State for its supply of petroleum products.

The national oil (marketing) companies, according to industry sources, are likely to opt for southern districts whose petrol consumption is comparatively less.

Noting that supply locations would be finalised in a couple of days, a senior official of an oil company said not more than eight districts were likely to be covered under the project. The Government's decision to restrict the manufacturing licence of sugar mills, for supply of ethanol to the oil companies, was prompted by drought, sources said. It felt that ethanol requirement for other purposes would be hit, if the estimated demand for the cane byproduct by the oil companies was met. Six distilleries in the State have been granted licence to manufacture anhydrous ethyl ethanol.

The oil industry is working out the modalities and the cost of employing State government officials at the terminals, where ethanol will be mixed with petrol. It will also study the likely expenditure on police escort for vehicles transporting ethanol to the terminals.

Earlier, the oil industry was opposed to the posting of the employees — oil companies' have bulk storage locations in 23 places — and sought permission to move ethanol without police protection.

Tamil Nadu and Pondicherry figured in the list of locations where ethanol-mixed petrol, which holds out promise for sugarcane farmers, was to be introduced in the first phase of the project in the country from January 1, 2003.

Subsequently, the deadline was extended and the launch was kept in abeyance by the Ministry. The last deadline for the launch was January 31 this year.

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