Intervention requested for smooth movement of Ethanol


Ministry of Consumer Affairs, Food & Public Distribution has sent letter to The Chief Secretaries/ Administrators of All State Governments/ UT Administrations where it requested for Intervention for smooth movement of Ethanol- regarding.

It stated in a letter that states of Kamataka, Maharashtra, Gujarat, Goa, Madhya Pradesh, Chhattisgarh, Bihar, Odisha, Jharkhand, Haryana, Punjab. Telangana, Uttarakhand, and Kerala have de-controlled the movement of ethanol and there is no tax/duty/fee levied on denatured ethanol. However, it has been brought to the notice of this department that permission is required for movement of ethanol in the states of Rajasthan. West Bengal (Online process), Uttar Pradesh (Online process), Andhra Pradesh, Tamil Nadu. Further. states of Goa, Haryana, Rajasthan, Tamil Nadu, Uttar Pradesh, Uttarakhand and West Bengal are imposing export/import (from/to State) duty, Urban Development Cess and Admin Charges on intra/inter-State movement.

The letter further said, “It is intimated that Government has fixed target of 10% blending of fuel grade ethanol with petrol by 2022 and 20% blending by 2025 under the Ethanol Blended with Petrol (EBP) Programme. To achieve these targets in all parts of the country, unhindered movement of ethanol is a prerequisite. The blending of ethanol with petrol would reduce import dependency on crude oil and it will also enhance income of farmers as additional foodgrains, sugar juice/molasses will be utilised for production of ethanol. In view of the above and for successful implementation of EBP Programme all the State Governments/ UI Administrations are hereby requested to implement the amendment made by the Union Government in the Industries (Development & Regulation) Act, 1951, by removing the aforesaid duties/fees/cess levied on denatured ethanol and by removing restriction/permission on the movement of denatured ethanol.”



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