OMCs entered into long-term purchase agreements for upcoming specialized ethanol plants across the country
The Oil Marketing Companies, OMCs – Bharat Petroleum Corporation Limited, Indian Oil Corporation Limited and Hindustan Petroleum Corporation Limited have entered into a long-term purchase agreement for upcoming dedicated ethanol plants across the country.
The first set of Tripartite Agreement was signed among Oil Marketing Companies and Banks of the respective Ethanol Plant Projects in presence of Sandeep Poundrik, Principal Secretary of Department of Industries, Government of Bihar; Ashwani Bhatia, Managing Director of State Bank of India and Sukhmal Jain, Executive Director of Marketing Corporate, Bharat Petroleum Corporation Limited.
State Bank of India, Indian Overseas Bank and Indian Bank are three banks involved in this agreement with Oil Marketing Companies.
As per the agreement, ethanol produced by these dedicated ethanol plants shall be sold to Oil Marketing Companies for blending with Petrol as per government Ethanol-Blended Petrol Programme.
In Ethanol Supply Year 2021-22, India has achieved 9.90 per cent ethanol blending, consuming 186 crore litre of ethanol and saving of over nine thousand crore rupees of foreign exchange.