Leading Oil PSUs come together to sign Tripartite-cum-Escrow Agreement for upcoming dedicated ethanol plants

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Leading Oil PSUs come together to sign Tripartite-cum-Escrow Agreement for upcoming dedicated ethanol plants
Leading Oil PSUs come together to sign Tripartite-cum-Escrow Agreement for upcoming dedicated ethanol plants
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Azadi Ka Amrit Mahoutsav

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 by PIB Delhi

The Oil Marketing Companies (OMCs) – Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Limited (HPCL) have entered into a long-term purchase agreement (LTPA) for upcoming dedicated ethanol plants across India. The first set of Tripartite-cum-Escrow Agreement (TPA) was signed among OMCs, project proponents and Banks of the respective ethanol plant projects in presence of Shri Sandeep Poundrik (IAS), Principal Secretary, Department of Industries, Govt. of Bihar, Shri Ashwani Bhatia, MD State Bank of India and Shri Sukhmal Jain, Executive Director I/C, Marketing Corporate, BPCL.

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State Bank of India, Indian Overseas Bank and Indian Bank are three banks who are involved in this tripartite agreement with OMCs and project proponents. The agreement is designed to ensure that payment received by Ethanol plants is utilized for servicing the finance extended by these Banks. As per the agreement, ethanol produced by these dedicated ethanol plants shall be sold to OMCs for blending with Petrol as per Govt of India’s Ethanol Blended Petrol (EBP) Program. Payment towards supply of ethanol shall be credited to escrow account maintained with the financing bank to ensure servicing of loan as per schedule. TPAs were signed with Micromax Biofuels Pvt Ltd, Bihar, Eastern India Biofuels Pvt Ltd, Bihar, Muzaffarpur Biofuels Pvt Ltd, Bihar, K P Biofuels Pvt. Ltd, Madhya Pradesh and Visag Biofuels Private Limited, Madhya Pradesh.

In Ethanol Supply Year 2021-22, India achieved 9.90% ethanol blending, consuming 186 Cr. Ltr of ethanol, saving over 9000 Crores of foreign exchange. However, the Government has advanced the target of achieving 20% blended ethanol by 2025, which is commonly known as E20 target. The major challenge is the deficit of ethanol to achieve this target. As per E20 scenario, the country requires 1,016 crore litre of ethanol to achieve the target in 2025-26. But, there is a deficit of approx. 650 crore of ethanol as per the current availability. These five projects are likely to contribute to around 23 crore litres of ethanol per annum.

Ethanol blended petrol not only give us cleaner environment as it produces 38 % lesser carbon dioxide emission, as well as, support rural economy with investment in rural areas and employment generation.

About Post Author

Suman Munshi

Founder Editor of IBG NEWS (15/Mar/2012- 09/Aug/2018). Recipient of Udar Akash Rokeya Shakhawat Hossain Award 2018. National Geographic & Canon Wild Clicks 2011 jury and public poll winner. Studied Post Graduate Advance Dip in Computer Sc., MBA IT,LIMS (USA & Australia), GxP(USA & UK),BA (Sociology) Dip in Journalism (Ireland), Diploma in Vedic Astrology, Numerology, Palmistry, Vastu Shastra & Feng Sui 25 years in the digital & IT industry with Global MNCs' worked & traveled in USA, UK, Europe, Singapore, Australia, Bangladesh & many other countries. Education and Training advance management and R&D Technology from India, USA, UK, Australia. Over 30 Certification from Global leaders in R&D and Education. Computer Science Teacher, IT & LIMS expert with a wide fan following in his community. General Secretary West Bengal State Committee of All Indian Reporter’s Association
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