Patna: The Bihar government has urged the Centre to raise the ethanol purchase quota for the state, with Deputy Chief Minister Samrat Choudhary set to take up the matter during his visit to Delhi, Industries Minister Dilip Jaiswal said on Monday, The Times of India reported.
The state government has already taken up the issue with the Centre, and Chief Minister Nitish Kumar, who is scheduled to visit Delhi, will also raise the matter during his meetings, he said.
Jaiswal was responding to concerns raised by MLAs from different parties during Question Hour in the Bihar Legislative Assembly. Members said ethanol factories in the state were facing difficulties and could shut down because the Centre had allegedly reduced the quantity it purchases. The issue was raised by Janata Dal (United) MLA Shyam Rajak, Bharatiya Janata Party MLAs Rajnish Kumar and Jibesh Kumar, and Rashtriya Janata Dal MLA Kumar Sarvajeet. They cited reports suggesting several ethanol units were close to shutting down.
The minister rejected claims of factory closures, calling them misleading. He said that under the leadership of Chief Minister Nitish Kumar, the state has provided ₹1,700 crore in incentives to industries, and that the ethanol plants mentioned on social media had also received these benefits.
Explaining the situation, Jaiswal said the Centre had signed an agreement to buy 35.28 crore litres of ethanol from Bihar, even though the state’s production capacity exceeds 50 crore litres. He acknowledged that oil companies had reduced their purchases due to issues such as limited storage facilities.
Shyam Rajak warned that if the problem continued, factories could be forced to shut, leading to large-scale job losses. Lawmakers asked whether the state government would hold talks with oil companies to ensure they buy the excess ethanol, especially as Bihar’s maize production has increased.
