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Deora, Pawar to meet Tuesday over ethanol supply

By IANS,

New Delhi: Petroleum Minister Murli Deora and Agriculture Minister Sharad Pawar will meet Tuesday to discuss the issue of supply of ethanol for blending with petrol.

The Cabinet Committee on Economic Affairs (CCEA) had Nov 12 reiterated that oil marketing companies had to ensure gasoline was blended with 5 percent ethanol to limit India’s oil imports.

The oil ministry says it will be difficult to fulfil the supply of ethanol, with tenders attracting less than half the requirement due to the price being paid by oil companies.

“The cabinet decided to reiterate its earlier decision,” Home Minister P. Chidambaram had told reporters after the CCEA meet. “We want to make sure that oil marketing companies are implementing it.”

The CCEA also decided to set up an inter-ministerial panel, comprising officials from the ministries of food and public distribution, non-renewable energy resources and petroleum and natural gas, to sort out issues relating to “supply dislocation” of ethanol.