BIEPA Calls for Balanced Ethanol Allocation Amid Legal Developments

The Bharat Independent Ethanol Producers Association (BIEPA) emphasizes the need for a fair allocation system for ethanol, in light of a Karnataka High Court interim order. BIEPA urges government engagement to support independent ethanol producers essential for India's energy transition and future production goals.

The Bharat Independent Ethanol Producers Association (BIEPA) has highlighted potential repercussions stemming from a recent interim order by the Hon'ble Karnataka High Court concerning ethanol allocations. This decision underscores the necessity for a balanced, consultative framework to uphold the independence of India's ethanol production sector.

Emphasizing the stakes for non-LTOA ethanol manufacturers, representing over 115 units with a combined installed capacity of nearly 750 crore litres, BIEPA notes these facilities were established under government incentives without the security of Long Term Off-Take Agreements (LTOA). With investments surpassing ₹20,000 crore, these plants rely heavily on allocations from oil marketing companies for their operations.

BIEPA President Pushpinder Singh stated the importance of a stable allocation system to maintain investor confidence. As India's ethanol production capacity reaches approximately 1,700 crore litres annually, equitable allocation of offtake opportunities remains crucial for the industry's sustainable growth. Furthermore, BIEPA advocates for strategic initiatives to drive future demand, including the advancement of flex-fuel vehicles and alternative ethanol applications.

(With inputs from agencies.)