Three oil marketing companies in India have launched a tender for 2.53 billion litres of ethanol to meet demand under the gasoline-blending programme between February and November 2020.
Indian Oil Corporation (IOC), Hindustan Petroleum (HPC) and Bharat Petroleum (BPC) seek to procure 1.07 billion litres, 787 million litres and 672 million litres, respectively, the Business Standard reports.
Monsoon and post-monsoon floods have damaged the cane crop this year. The previous tender for ethanol, launched in September 2019, aimed to secure 5.11 billion litres, but contracted only 1.56 billion litres. The Business Standard says experts expect this new tender to be undersubscribed too.
Under its new biofuel policy, India aims to reach 20% ethanol in petrol by 2030 with an interim goal of 10% by 2022. Ethanol supply, however, cannot meet demand for now.
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Indian oil cos seek to procure 2.5 bn litres of ethanol in tender