Cabinet panel moots 10% ethanol mix in fuel
06 Dec 2013
An empowered group of ministers (EGoM) on petroleum products has recommended the blending of 10 per cent ethanol in vehicle fuels, among other things.
The state-controlled oil marketing companies and sugar mills will decide on ethanol blending by next week, union agriculture minister Sharad Pawar said after the EGoM meeting.
He said the cabinet panel will recommend to the prime minister to give some concessions to the sugar the sector. Pawar, the chief of the Maharashtra-based Nationalist Congress Party, was known as a 'sugar baron' before he moved to the centre.
Sugar mills may get Rs 7,000 crore, and banks will also give loans to sugar mills against excise paid. These companies can use the loan against excise only for cane payment, Pawar said.