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Informist, Monday, Jun. 15, 2026

 

By Taniva Singha Roy

 

MUMBAI – Oil marketing companies are expected to issue another round of ethanol procurement tender for ethanol supply year 2025–26 (Nov-Oct) immediately after the final hearing of a legal dispute underway in courts. The final verdict is expected when the Supreme Court resumes work in mid-July after its annual summer vacation, a senior government official told Informist on the sidelines of the Sugar – Ethanol and Bioenergy Conference held in Mumbai. 

 

The dispute stems from a legal challenge over ethanol supply tenders, involving oil marketing companies and dedicated ethanol plants, specifically Vinp Distilleries and Sugars Pvt Ltd. Dedicated ethanol producers have long-term contracts promising them preferential supply allocations. They challenged the OMCs in court for failing to actually provide such preferential allocations, treating them on par with general sugar factories in the newer tender.

 

The Karnataka High Court had given a verdict in fvour of Vinp Distilleries on Dec. 15, but the Supreme Court subsequently ruled against this verdict on Mar. 10. However, the primary writ proceedings are pending a final hearing in Karnataka High Court. OMCs are awaiting the final, definitive verdict from the Karnataka High Court.

 

OMCs issue tenders to procure ethanol from distilleries to support the national Ethanol Blended Petrol Programme. This initiative aims to blend ethanol with petrol, achieving the nationwide target of achieivng 20% blending to reduce crude oil import dependence, save foreign exchange, and limit vehicular emissions. 

 

For the current ethanol supply year, in the first round, OMCs tendered for roughly 10.5 billion litres of ethanol but received total bids of 17.76 billion litres. In terms of feedstock, maize accounts for the largest share at nearly 45% for ethanol supply, followed by Food Corp. of Inia rice at 22%, sugarcane juice at 16%, B-Heavy molasses at 11%, and C-Heavy molasses at 1%.  End

 

Edited by Avishek Dutta

 

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