Shri Murli Deora holds discussions with Maharashtra CM for smoothening implementation of Ethanol Blended Petrol Programme CM AGREES TO REMOVE EXPORT DUTY ON ETHANOL TO FACILITATE UTILIZATION OF EXCESS ETHANOL PRODUCTION OF MAHARASHTRA IN OTHER STATES SHRI DEORA REITERATES NEED FOR RATIONALIZATION – REDUCTION OF OCTROI DUTY ON CRUDE OIL PROCURED BY MUMBAI REFINERIES
	17:38 IST

Shri Murli Deora, the Minister of Petroleum & Natural Gas held extensive talks with Shri Vilasrao Deshmukh, Chief Minister of Maharashtra for ensuring successful implementation of the National Programme for supply of Ethanol Blended Petrol (EBP) which has been implemented in several States and Union Territories of the Country. In a meeting held at Mumbai today, Shri Deora requested the Chief Minister to completely remove the export duty on ethanol so that excess production in Maharashtra could be supplied to other States which will ultimately benefit sugarcane farmers of Maharashtra. Later, briefing media persons, Shri Vilasrao Deshmukh stated that his government will withdraw the export fee of Rs.1500 per kilo litre (Rs.1.5 per litre), presently being imposed on ethanol supplies to other States. The Petroleum Minister stressed that the EBP Programme at 5% blending of ethanol with petrol was launched commencing 1st November, 2006 through out the country (except North eastern States, Jammu & Kashmir, Andaman & Nicobar Islands & Lakshadweep Islands). This programme is aimed at contributing to energy security through use of alternative fuel sources and also help sugarcane farmers to earn additional income. This initiative is environment friendly as oxygenate nature of ethanol ensures greater petrol combustion leading to lesser emission of pollutants. So far, EBP is being supplied in 11 States and 3 Union Territories covering about 70% of the identified States. Out of total requirement of 180 crore litres ethanol for 3 years, Oil Marketing Companies (OMCs) have already contracted a quantity of 140 crore litres. They have so far procured 19.35 crore litres under the programme as on 31st December, 2007. The programme in few States like West Bengal, Tamil Nadu, Chhattisgarh, Kerala could not be implemented for various reasons. In case of Kerala, OMCs have finalized tenders but the State excise department is required to issue necessary import permits. The Government of West Bengal is required to issue notification permitting import of ethanol and indicating taxes/levies applicable. Government of Tamil Nadu has stopped ethanol supplies due to reported shortage, while in Orissa & Chhattisgarh procurement could not be finalized due to high duties/levies. There are certain procedural impediments which have affected the free movement of ethanol across States. These are in the nature of multiple clearances to be obtained for issue of permits for export of ethanol from one State to another. For ensuring successful implementation of EBP programme, the Minister of Petroleum & Natural Gas Shri Murli Deora has held regional level meetings with representatives of various States to sort out these issues. A meeting was held in Srinagar on 16th June, 2007 covering the hill states of Jammu & Kashmir, Himachal Pradesh and Uttarakhand. Another meeting was convened in Kochi on 23rd June, 2007 to discuss and resolve issues pertaining to southern States of Kerala, Karnataka and Tamil Nadu. The matter has also been taken up with Chief Ministers of concerned States from time to time. Recently, Prime Minister has also written to the Chief Ministers. Shri Murli Deora also reiterated his earlier demand for rationalization octroi levied by Brihan -Mumbai Municipal Corporation (BMC) on crude oil procured by Mumbai refineries of BPCL & HPCL. This levy has been putting additional burden on these two OMCs, who are already facing heavy under recoveries in their effort to insulate consumers against high volatility in global crude oil prices. In addition they expressed satisfaction on the progress made by Mahanagar Gas Limited (MGL) in expanding compressed natural gas (CNG) & piped natural gas (PNG) infrastructure/ supplies in Mumbai and surrounding areas. Shri Deora assured the Chief Minister that increasing CNG & PNG supplies in Mumbai in particular & other cities of Maharashtra in general is high on Government. priority and project implementation for the purpose would be accelerated. The number of households connected to PNG supplies has reached 3.32 lakhs while the number CNG vehicles has now increased to 1.83 lakhs. There are at present 127 CNG stations in the city of Mumbai & adjoining areas of Thane & Mira Road. MGL has a CNG infrastructure network of 222 km. steel pipelines and 2180 km. polyethylene pipelines. RCJ / MMI- 0708