Close Menu
PNN DigitalPNN Digital
    Facebook X (Twitter) Instagram
    PNN DigitalPNN Digital
    • Business
    • National
    • Entertainment
    • Lifestyle
    • Education
    • Press Release
    • Submit Your PR
    PNN DigitalPNN Digital
    Home - Business - Ethanol Allocation Framework Needs Review as Capacity Expands: BIEPA
    Business

    Ethanol Allocation Framework Needs Review as Capacity Expands: BIEPA

    PNN Online DeskBy PNN Online DeskFebruary 11, 2026No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Ethanol Allocation Framework Needs Review as Capacity Expands: BIEPA-PNN
    Share
    Facebook Twitter LinkedIn Pinterest Email

    New Delhi [India], February 11: The Bharat Independent Ethanol Producers Association (BIEPA) has drawn attention to the potential implications of an interim order passed by the Hon’ble Karnataka High Court on ethanol allocation, noting that it highlights the need for a balanced and consultative approach to sustain India’s independent ethanol production ecosystem.

    Non-LTOA units, which represents over 115 ethanol manufacturing units that do not have a Long Term Off-Take Agreement (LTOA) with the OMCs, said these plants together account for an installed capacity of nearly 750 crore litres. The facilities, which were set up in response to the government’s ethanol blending roadmap targeting 20 per cent blending of ethanol in petrol, are mostly setup prior to the plants which have a LTOA. These plants have cumulative investments exceeding ₹20,000 crore, largely financed by banks and financial institutions.

    These units were established under government-notified schemes such as the Interest Subvention Scheme and B-2 category environmental clearances, and are by default mandated to operate as dedicated ethanol plants. Unlike LTOA units, non-LTOA plants do not have assured long-term offtake arrangements and depend entirely on allocations from oil marketing companies (OMCs) for capacity utilisation.

    Commenting on the same, Pushpinder Singh, President, BIEPA, said, “Independent ethanol producers answered the government’s call to build capacity for India’s energy transition even prior to and without the LTOA regime. As the sector evolves, allocation mechanisms must remain balanced and predictable to sustain investor confidence and ensure the long-term stability of the ethanol blending programme.”

    India’s ethanol production capacity has expanded to around 1,700 crore litres, while annual demand is estimated at approximately 1,200 crore litres. In recent tenders, OMCs have followed an allocation approach intended to distribute offtake across the ecosystem, factoring in both LTOA and non-LTOA capacities to support sector-wide sustainability.

    BIEPA noted that recent developments, including interim judicial directions in an ongoing matter, have brought renewed attention to the allocation framework and its implications for independent producers that are fully dependent on ethanol offtake for their operations.

    The association has urged the Ministry of Petroleum and Natural Gas to engage with stakeholders and evolve an allocation methodology that remains equitable, transparent, and aligned with the long-term objectives of the ethanol blending programme.

    BIEPA also reiterated the need for a long-term demand roadmap beyond the 20 per cent blending target, including faster adoption of flex-fuel vehicles and development of alternative ethanol applications such as Sustainable Aviation Fuel (SAF), diesel blending, and bio-based chemicals, to ensure demand growth keeps pace with capacity creation.

    If you object to the content of this press release, please notify us at pr.error.rectification@gmail.com. We will respond and rectify the situation within 24 hours.

    Allocation Framework BIEPA ethanol
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    PNN Online Desk
    • Website

    Related Posts

    India’s Foundry Industry To Reach USD 42.5 Bn. By 2029: Bharat Foundry 360° Insight 2025 – 2047 Report

    February 11, 2026

    Next Crypto to Explode in 2026 Could Be AXS or BNKR, but for DeepSnitch AI, the Crypto Explosion Isn’t a Question of ‘If’ but of ‘When’ and ‘How Much’

    February 11, 2026

    SEPC Limited to Execute INR 314 Crore Smart Prepaid Metering Project in Punjab under RDSS

    February 11, 2026
    Add A Comment

    Comments are closed.

    Recent Posts
    • India’s Foundry Industry To Reach USD 42.5 Bn. By 2029: Bharat Foundry 360° Insight 2025 – 2047 Report
    • Next Crypto to Explode in 2026 Could Be AXS or BNKR, but for DeepSnitch AI, the Crypto Explosion Isn’t a Question of ‘If’ but of ‘When’ and ‘How Much’
    • SEPC Limited to Execute INR 314 Crore Smart Prepaid Metering Project in Punjab under RDSS
    • Bonbloc Partners with Chennai Super Kings Driving AI Innovation in Sports Entertainment
    • Genient Advances Precision Diagnostics for India with Clinical Genomics and AMR-Focused NGS Solutions

    India’s Foundry Industry To Reach USD 42.5 Bn. By 2029: Bharat Foundry 360° Insight 2025 – 2047 Report

    February 11, 2026

    Next Crypto to Explode in 2026 Could Be AXS or BNKR, but for DeepSnitch AI, the Crypto Explosion Isn’t a Question of ‘If’ but of ‘When’ and ‘How Much’

    February 11, 2026

    SEPC Limited to Execute INR 314 Crore Smart Prepaid Metering Project in Punjab under RDSS

    February 11, 2026

    Bonbloc Partners with Chennai Super Kings Driving AI Innovation in Sports Entertainment

    February 11, 2026

    Genient Advances Precision Diagnostics for India with Clinical Genomics and AMR-Focused NGS Solutions

    February 11, 2026

    5868 PMAY units lined up for delivery at Suraksha Smart City, Vasai

    February 11, 2026
    PNN Digital
    2026 © pnn.digital

    Type above and press Enter to search. Press Esc to cancel.