Oil marketing companies (OMCs) will acquire over 300 crore litres of ethanol from upcoming biofuel manufacturing facilities spanning eight states and two union territories. The OMCs Ethanol Procurement Group (OEPG) has initiated an expression of interest (EOI) to attract bidders for establishing long-term off-take agreements with Dedicated Ethanol Plants (DEPs) in Tamil Nadu, Kerala, Andhra Pradesh, Telangana, Gujarat, Rajasthan, Goa, Odisha, and the Union Territories of Jammu and Kashmir and Ladakh, aiming to procure denatured anhydrous ethanol.
Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL), collectively, are committed to procuring 301 crore litres of ethanol annually from these plants, expected to commence commercial operations within two years from the agreement’s signing.
As reported by businessline, bidders are required to submit an affidavit affirming that the proposed DEP will be operational within two years from the issuance of the letter of intent (LoI). The OMCs will procure the highest volume, 97 crore litres annually, from Tamil Nadu, followed by Kerala (55 crore litres), Rajasthan (44 crore litres), Gujarat (33 crore litres), and Andhra Pradesh (30 crore litres).
