UPA Government Is Serious
On Ethanol Now
The World Environment Day, 5th June 2007 will be
remembered as the most “happening” day in the history of
ethanol manufacturers in India. It was all sweet news in the week.
It started by the visit of Honorable President of Brazil Luiz
Inacio Lula da Silva in New Delhi. His meet with Honorable Prime
Minister Dr. Manmohan Singh concerted focus on trade, economy and
strategic partnership & ethanol and its development was one of the
hallmark of the summit.
Sooner the UPA government also through Ministry of Petroleum and
Natural Gas showed their serious intentions, “Rededicating
towards ensuring a greener future”. The UPA government has taken
a number of initiatives as a commitment towards the nation and
common man in which environmental friendly ethanol blending program
was prime on the list. Thanks to the visionary Leaders, Ms. Sonia
Gandhi, Prime Minister Dr. Manmohan Singh, Deputy Chairman -
Planning Commission Dr. Montek Singh, Agricultural Minister Mr.
Sharad Pawar & Finance Minister Mr. P. Chidambaram. They all have
shown that they crystallized policies when it comes to the security
of common man.
blending from October 2008:
The Government is serious of considering 5% doping mandatory with
immediate effect & are willing to increase it to 10% from October
2008. This decision will be directly benefiting the sugar cane
producing states like Uttar Pradesh, Maharashtra, Karnataka, Tamil
Nadu, Andhra Pradesh, Gujrat & Bihar. As all these states are facing
a serious problem of excess sugarcane cultivation for the current
year and also could face the same in future too.
Ethanol from directly sugarcane juice was the only solution left
with them. We are proud that our website
www.ethanolindia.net has published
an article six months before which the government has taken note.
Hard Road Ahead:
The policy is now clear but still the question of “comfort zone
of Oil Marketing Company” is important. The ethanol producers
should concentrate on the technologies by bringing the cost of
production at lower end & here Brazil’s input is important. I
strongly believe that Indian Technology Providers like PRAJ
Industries Ltd., Alfa Laval (India) Ltd, & others are quite
superior. PRAJ Industries Ltd has embarked his name in Latin America
Indian Sugar Mills and the private stand-alone ethanol manufacturers
should cut the cost of production by using good technologies
requiring less utilities like steam, water and electricity and they
should also concentrate on co-generation through effluent
generated by “Sugarcane Juice & Molasses Route”. The lower cost of
production can still bring the ethanol prices down from the current
Rs. 21.50 per liter. Suppliers from Maharashtra are supplying
at Rs. 19.50 per liter. The Oil Marketing Companies should
appreciate this & support them. The ethanol suppliers should now
focus on producing large quantum as this could drop the production
cost creating a Win-Win Situation.
Indian ethanol technology is at par with Brazilians. We need to
take only the methodology; specifically the Oil Marketing Companies
should understand the economics of blending & frame
a system which suits their petrol pricing mechanism & then they can
bridge with the ethanol pricing mechanism. I further say one
step ahead that they should add their own margin on ethanol as they
do currently with petrol refining and marketing. I still believe
that the price would be much cheaper. The finance ministry has a
definite role to play here.
adding margins to ethanol from Oil Marketing Companies will also
keep their interest in blending apart from the pressure of mandate.
current period can be called as “a turn around period” for sweet
future for ethanol manufacturers.
Your comments & suggestions are welcome. You
can interact with Mr. Deepak Desai on email -
and Cell No. +91 (0) 9823139883.
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