The Dharwad bench of the Karnataka High Court on April 25, 2024 has delivered a judgment in the case of Hermes Distillery versus the central government’s restriction on ethanol production from B heavy ethanol and sugarcane juice syrup.
Key Points from the High Court’s Order:
– Manufacturing Permission: The court has allowed manufacturers like Hermes Distillery and others to produce ethanol from ‘B’ heavy molasses.
– Ethanol Procurement: Oil Marketing Companies (OMCs) are ordered to procure the ethanol already manufactured by the petitioners within three weeks.
– Restriction on Molasses: The petitioners are restrained from generating or purchasing any more ‘B’ heavy molasses.
– Stock Utilization: Petitioners with a stock of ‘B’ heavy molasses are permitted to manufacture ethanol, which must be completed within eight weeks.
– Government Review: The impugned orders are applicable only for this year and are subject to review by the Group of Ministers.
– Policy Development: The respondents are directed to develop policies to provide relief to the petitioners regarding loan payments for ethanol manufacturing units and to support workers who may lose their jobs due to the restrictions.
Implications for the Ethanol Industry:
This verdict marks a significant shift in the legal landscape for the ethanol industry. It provides a temporary reprieve for ethanol manufacturers, allowing them to continue operations and fulfill existing contracts. The court’s directive for the government to review its policies indicates a move towards more supportive measures for the industry, balancing economic interests with sustainable practices.
Background of the Case:
Hermes Distilleries Pvt Ltd initiated the legal battle against the government’s directive that mandated sugar production over ethanol from sugarcane, which had caused concerns to the operations of ethanol producers. The court’s interim stay order had previously allowed the continuation of ethanol production from sugarcane juice, providing a crucial lifeline for the industry.
Looking Forward:
The industry now looks to the Group of Ministers for further directions. The Hermes Distillery case underscores the importance of comprehensive policies that consider the economic viability of ethanol production alongside environmental sustainability.
For more detailed information, please refer to the official court order posted on the High Court’s website.
Read Karnataka High court order
Disclaimer: The views and opinions expressed in the article by Dilip Patil, Managing Director of Samarth SSK Ltd., are solely his own.
