Cabinet hikes ethanol prices by over Rs 5/litre to Rs 52.43
New Delhi, Sep 12 : The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a hike in the price for procurement of ethanol by oil marketing companies (OMCs) by over Rs 3 increasing the rate for the clean fuel derived out of 'B' heavy molasses from the current Rs 47.13 per litre to Rs 52.43.
Briefing reporters here following a cabinet meeting, Petroleum Minister Dharmendra Pradhan said the CCEA had also decided to increase the ex-mill price of ethanol derived fully from sugarcane juice at Rs 59.13 per litre for those mills who will divert thier total sugarcane juice for ethanol production without producing any sugar.
A Petroleum Ministry release said the cabinet approved prices are valid for the sugarcane season from December 2018 to November 2019.
"The cabinet has given its approval to revise/fix the price of ethanol derived from B heavy molasses/partial sugarcane juice and fix a higher price for 100 per cent sugarcane juice based ethanol for the forthcoming sugar season 2018-19 during ethanol supply year from 1st December 2018 to 30th November 2019 to Rs 52.43 per litre (from prevailing price of Rs.47.13 per litre)," it said.
"The cabinet has also decided to fix the ex-mill price of ethanol derived from 100% sugarcane juice at Rs 59.13 per litre, from prevailing price of Rs 47.13, for those mills which will divert 100 per cent of sugarcane juice for production of ethanol, thereby not producing any sugar," Pradhan said.
The government said the GST and transportation charges will also be payable, while OMCs have been advised to fix realistic transportation charges so that long distance transportation of ethanol is not disincentivised.
"The decision will serve multiple purposes of reducing excess sugar in the country, increasing liquidity with the sugar mills for settling cane farmers' dues and making higher ethanol available for the Ethanol Blended Petrol (EBP) programme," he said.
All distilleries will be able to take benefit of the scheme and a large number of them are expected to supply ethanol for the EBP programme, he added.
The EBP programme, started in 2003, aims to bring down India's imports of petroleum products, for the country that imports over 80 per cent of its oil requirements.
The statement noted that as compared to ethanol derived from C heavy molasses, diversion of B heavy molasses reduces the sugar content by about 20 per cent and increases ethanol availability by about 100 per cent.
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Kharge says LPG crisis due to govt's lack of planning, BJP accuses Cong of creating anarchy
New Delhi (PTI): Leader of Opposition in Rajya Sabha Mallikarjun Kharge on Monday held the government responsible for the current LPG crisis by not taking preemptive measures, evoking a sharp counter from Union Minister J P Nadda, who accused the Congress of trying to create anarchy in the country and indulging in politics instead.
Raising the matter during the Zero Hour in the House, Kharge accused the government of not doing advance planning and making alternative arrangements for LPG imports as the government "knew" that the West Asia crisis could impact critical maritime routes and energy supplies.
Rebutting him strongly, Nadda, who is also Leader of the House, accused opposition parties, especially Congress, of not standing with the people but of instigating them.
"The LPG crisis has caused widespread panic across the entire nation. Its impact is severely affecting the poor and vulnerable sections, the middle class, ordinary households, restaurants, hostels, and commercial users," Kharge said.
India imports nearly 60 per cent of its total LPG requirements. Of this, 90 per cent of imports pass through the Strait of Hormuz. From this perspective, Kharge said the current situation has become a matter of serious concern for both domestic availability and price stability.
He said the effects of the LPG crisis are being felt in nearly every part of the country, and people in households are distressed.
Kharge sought to highlight that small roadside eateries, restaurants, hostels — all are impacted. From community kitchens to Ram Rasoi, everything has shut down. Not just homes — MSMEs and other commercial users are facing severe difficulties in obtaining LPG cylinders.
"It is concerning that many establishments have limited or completely halted their operations. Some are purchasing at exorbitant rates, over Rs 5,000 per cylinder," the senior Congress leader claimed.
Kharge further said that the Union Petroleum Minister had claimed in the Lok Sabha that there is no shortage of LPG and called for caution against rumours.
"But the ground reality proves the government's claims wrong," he added.
He said that when the government was issuing advisories to Indian citizens in Iran that the situation could worsen, it should have clearly stated that this could also impact critical maritime routes and energy supplies, and should have taken steps in advance.
"Government very well knew that a crisis was impending at the Strait of Hormuz. The situation would not have been that bad had advance planning and alternative arrangements for LPG imports done in advance," Kharge said.
He said the waiting period for cylinder bookings in the country has also been extended, now 25 days in cities and 45 days in villages/remote areas.
This has triggered panic booking and increased the likelihood of hoarding, he said.
The Congress leader questioned why the government did not take stringent measures if it knew that the LPG crisis in the country would escalate.
"Why didn't it take the people and opposition in confidence? This crisis exposes the government's dismal management and flawed foreign policy," he said, and demanded a discussion on the issue.
While Kharge was making his remarks, Chairman C P Radhakrishnan repeatedly asked him to conclude as only three minutes are allowed to a speaker during the Zero Hour. However, the Chair allowed him extra time.
Parliamentary Affairs Minister Kiren Rijiju said Petroleum Minister Hardeep Singh Puri had given a detailed response on the issue in the Lok Sabha, but Congress members did not hear him out.
The Minister said Leader of Opposition in the Lok Sabha Rahul Gandhi was given the floor in the Lower House to speak on the issue, but he spoke on other things instead.
Nadda lamented that the Opposition, especially the Congress, is not hesitating to indulge in politics even during times of crisis.
He said the current West Asia conflict is not due to India and has no contribution.
The senior BJP leader said a Congress leader has also been caught hoarding LPG cylinders.
"They are resorting to hoarding of cylinders. They are instigating people. They are inciting the peaceful people of the country, and this is very unfortunate that even in such a situation, they are indulging in politics.
"Instead of standing with the country, they are trying to create anarchy...This is condemnable," Nadda added.
