The Cabinet Committee on Economic Affairs (CCEA) on Thursday permitted hikes of Rs 1.94-3.17/litre in the reserve prices of various classes of ethanol to be bought by oil advertising and marketing corporations (OMCs) below the ethanol mixing programme throughout the 2020-21 season to help sugar mills earn extra and clear the cane dues of farmers. Declining realisation from sugar gross sales over the previous couple of years have compelled the sugar factories to diversify into the inexperienced gas.
Ethanol produced from sugarcane juice/sugar/sugar syrup route has been elevated to Rs 62.65/litre from Rs 59.48, info and broadcasting minister Prakash Javadekar mentioned after the CCEA assembly. While the rise is increased at Rs 3.34/litre for ethanol produced from ‘B heavy molasses’, there’s a average rise of Rs 1.94/ litre in ethanol from ‘C heavy molasses’. The revised ethanol prices are Rs 57.61 and Rs 45.69 a litre when produced from B and C heavy molasses, respectively.
The authorities has been implementing EBP programme whereby oil advertising and marketing corporations promote petrol blended with ethanol up to 10%. Ethanol procurement by OMCs elevated from 38 crore litre in ethanol provide 12 months (ESY) 2013-14 to over 195 crore litre in ESY 2019-20 (December-November).
The CCEA additionally permitted that 100% of meals grains and 20% of sugar shall be mandatorily packed in diversified jute luggage, a transfer that might give an impetus to the diversification of the jute business.
The value of ethanol from C-heavy molasses route be elevated from Rs 43.75 per litre to Rs 45.69, from B heavy molasses route be elevated from Rs 54.27litre to Rs 57.61 and ethanol from sugarcane juice/sugar/sugar syrup route be elevated from Rs 59.48/litre to Rs 62.65.
“Additionally, GST and transportation charges will also be payable. Public sector oil marketing companies have been advised to fix realistic transportation charges so that long distance transportation of ethanol is not disincentivised,” the federal government mentioned in a press release.
In order to supply truthful alternative to the localised business inside the state and cut back crisscross motion of ethanol, oil advertising and marketing corporations would determine the standards for precedence of ethanol from numerous sources taking in account numerous elements like value of transportation, availability, and many others.
Further, relating to jute luggage, it should even be necessary that originally 10% of the indents of jute luggage for packing foodgrains could be positioned by way of reverse public sale on the GEM portal. This will steadily usher in a regime of value discovery. The Government has expanded the scope of necessary packaging norms below the Jute Packaging Material (JPM) Act, 1987.
In case of any scarcity or disruption in provide of jute packaging materials or in different contingency/exigency, the ministry of textiles might loosen up these provisions additional, up to a most of 30% of the manufacturing of foodgrains over and above the provisions.
The CCEA additionally permitted the Dam Rehabilitation and Improvement Project (DRIP) Phase II & Phase III with the monetary help of the World Bank (WB), and Asian Infrastructure Investment Bank (AIIB) to enhance the protection and operational efficiency of chosen dams throughout the entire nation, together with institutional strengthening with system large administration method. The challenge value is `10,211 crore. The challenge can be carried out over a interval of 10 years length in two Phases, every of six years length with two years overlapping from April 2021 to March 2031.