Oil Marketing Companies (OMCs) have issued a call for bids to supply approximately 916 crore liters of Denatured Anhydrous Ethanol for the ethanol supply year (ESY) 2024-25.
According to the tender document, bidders are required to specify the ethanol quantities in kiloliters (KL) they can provide, broken down by feedstock and by quarter, for the period from November 1, 2024, to October 31, 2025. Bids will remain valid until July 31, 2025.
Bids for the ESY 2024-25, covering the period from November 1, 2024, to October 31, 2025, are open to registered bidders in line with the long-term ethanol procurement policy.
The quarters are defined as follows:
– ESY Quarter 1 (Q1): November 2024, December 2024, January 2025
– ESY Quarter 2 (Q2): February 2025, March 2025, April 2025
– ESY Quarter 3 (Q3): May 2025, June 2025, July 2025
– ESY Quarter 4 (Q4): August 2025, September 2025, October 2025
The tender document specifies that ethanol sourced from various feedstocks, including Sugar Cane Juice, Sugar, Sugar Syrup, B-Heavy Molasses, C-Heavy Molasses, Damaged Food Grains, and Maize, must be offered in the quantity bid form. Bidders must submit their total quantities for each respective feedstock within the designated periods. The combined quantity offered should not exceed the bidder’s total licensed production capacity.
For the ESY 2024-25, OMCs will procure ethanol from the aforementioned sources at the prevailing rates for ESY 2023-24 (inclusive of any incentives) until any revisions are made by OMCs or the Government of India.
India aims for a 20% ethanol blending target by 2025. As of August, the ethanol blending in petrol reached 15.8%, and cumulative blending from November 2023 to August 2024 was at 13.6%.
To meet the 20% blending target by 2025, approximately 1016 crore liters of ethanol will be needed, with a total ethanol requirement, including other uses, of 1350 crore liters. This translates to a need for around 1700 crore liters of ethanol production capacity by 2025, assuming an operational efficiency of 80%.
According to the Department of Food and Public Distribution (DFPD), India’s ethanol production capacity has significantly increased from 518 crore liters in 2017-18 to an impressive 1,623 crore liters as of August 31, 2024, reflecting the government’s commitment to promoting a greener future.
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