AP Plans Ethanol Sale Guidelines

The Andhra Pradesh government is considering issuing comprehensive guidelines to permit the sale of surplus ethanol exclusively for genuine industrial purposes while introducing strict safeguards to prevent its diversion for potable use. The proposal was discussed at a meeting chaired by Minister for Mines & Geology and Excise Kollu Ravindra at the State Secretariat with representatives of the Ethanol Manufacturers Association.

Principal Secretary (Revenue–Excise) Mukesh Kumar Meena said the government is committed to supporting industrial growth while ensuring ethanol is used only for authorised applications through a robust regulatory framework.

Representatives of the Ethanol Manufacturers Association informed the government that reduced procurement by Public Sector Oil Marketing Companies (OMCs) under the Ethanol Blended Petrol (EBP) Programme has resulted in surplus ethanol stocks, affecting the financial viability of manufacturing units. They requested permission to sell excess ethanol to approved industrial users, including pharmaceutical, paint and chemical industries, as well as eligible private oil marketing companies. The association assured the government that all existing commitments to Public Sector OMCs under the EBP Programme would continue to be honoured.

Following detailed discussions, Minister Kollu Ravindra assured the industry that the government would examine the proposal and formulate appropriate guidelines. The proposed policy will include strict monitoring mechanisms to ensure compliance with EBP Programme obligations and prevent any misuse or diversion of ethanol for drinking purposes.