The Hindu Business Line : 52 sugar cos offer 1,061 m litres of ethanol to oil firms

Green initiative
The top three suppliers are Shree Renuka Sugars (20.84 per cent), Bajaj Hindustan group(10 per cent) and Balrampur Chini Group (4.5 per cent).
The oil marketing companies require 565 million litres annually or about 1,700 million litres during the tender period of three years.

Mumbai April 1 Fifty-two companies from nine States have offered to supply 1,061.04 million litres of ethanol to the oil marketing companies (OMC) for five per cent blending with petrol.

The oil marketing companies had floated tenders and received offers from companies in Uttar Pradesh, Delhi, Bihar, Jharkhand, Goa, Maharashtra (partial), Tamil Nadu, Andhra Pradesh (partial) and Karnataka.

Earlier, the Government had notified supply of ethanol-blended petrol in 20 States and four Union Territories. They are to be delivered at the oil marketing companies' depots-terminals for three years with an option for a two-year extension on mutual consent.

The top suppliers are: Shree Renuka Sugars with 217 million litres (20.84 per cent), Bajaj Hindustan group 99 million litres (10 per cent) and Balrampur Chini Group 44 million litres (4.5 per cent).

"The price will be Rs 21.50 per litre ex-factory with State taxes being borne by the oil marketing companies. Though our factories are in Karnataka we have bagged orders for Maharashtra, Andhra Pradesh, Kerala and Goa," said Mr Narendra Murkumbi, Managing Director, Shree Renuka Sugars.

The oil marketing companies require 565 million litres annually or about 1,700 million litres during the tender period of three years. However, the response meets about 70 per cent of the required quantity.

"The shortfall can be easily met. We are in the process of stepping up ethanol production. Our total ethanol production will reach 110 million litres by May from 60 million litres and is to be enhanced further. Similarly, other sugar companies are also planning to up their production capacities," said Mr Murkumbi.

Early this month, the Minister of State for Petroleum and Natural Gas, Mr Dinsha Patel, had said that tenders for other States and locations were being finalised.

In 2005, the public sector oil marketing companies, led by Indian Oil Corporation, had signed an MoU with Indian Sugar Mills Association for supply of ethanol to implement the ethanol blended petrol programme.

Stocks up

Apart from the ethanol programme, recent Government initiatives appear to be pushing up sugar scrips on the bourses.

For the week ended March 30, Sakthi Sugars gained 58.49 per cent to Rs 100.80, Shree Renuka Sugars went up 18.47 per cent to Rs 467, Bajaj Hindustan jumped 15.66 per cent to Rs 194 and Oudh Sugars posted a 12.23 per cent gain to Rs 65.15.

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