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Oil firms to buy more ethanol from dry state of Bihar

NEW DELHI: Weeks after Bihar banned sale of liquor, the Centre has asked state-owned fuel retailers to buy as much ethanol as they can from distilleries in the state for mixing in petrol . Bihar, which in early April banned sale of liquor in the state, had asked the Oil Ministry to explore if Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) can lift the entire ethanol produced by the distilleries in Bihar. The Ministry discussed the Bihar government request with the oil marketing companies and asked them to maximise procurement of ethanol from the state, official sources said. According to oil companies, about 6 crore litres of ethanol may be produced in Bihar through sugarcane molasses. The oil firms will strive to absorb this ethanol for their programme to mix sugarcane extracted ethanol in petrol, to help Bihar, they said adding the move was likely to give about Rs 300 crore to farmers of the state through sugar mills / distilleries.This will also ensure proper utilisation of molasses in the state.