Offers for ethanol to be used by India’s OMCs fall short of blending requirements

Reports say that India’s state-run oil marketing companies (OMCs) will most likely receive 610 million liters of ethanol valued at Rs16.5 billion (US$331.8 million). The supply will come from the sugar industry and ethanol would be used for blending with petrol. The volume is less than the required 1,010 million liters which was stated in the tender that invited bids for supplying ethanol requirements. “The reason behind companies not offering higher quantities is the lack of clarity on pricing. Once the pricing formula is fixed and a supplementary tender is floated, more will be offered,” Narendra Murkumbi, managing director, Renuka Sugars explained. Renuka Sugars Ltd. offered the highest quantity of 90 million liters. Bajaj Hindustan came in second with and offer of 80 million liters and Balrampur Chini offered 36 million liters. (September 6, 2011)