Date:04/01/2006 URL: http://www.thehindubusinessline.com/2006/01/04/stories/2006010402861900.htm

Back Oil cos begin sales of ethanol-doped petrol in TN

Our Bureau

Chennai , Jan. 3

OIL companies have started sales of ethanol-doped petrol in Tamil Nadu.

According to sources in the know, the three oil companies — Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum — have started selling petrol mixed with five per cent ethanol in nine southern districts of Tamil Nadu. The supplies are on from Monday in Tirunelveli, Kanyakumari, Tuticorin, Ramanathapuram, Virudhunagar, Dindigul, Coimbatore, Erode and the Nilgiris.

This follows a tie-up between the oil companies and sugar mills in Tamil Nadu, which are to supply anhydrous ethanol for blending with petrol. Under the agreement five private sector sugar mills in Tamil Nadu — Thiru Arooran Sugars, Dharani Sugars, Sakthi Sugars, Rajshree Sugars and Kothari Sugars — are to supply over 1.85 crore litres ethanol a year.

The sources say that the sugar mills and the oil marketing companies are keen to see that the programme is extended to the entire State. They have sought the State Government's clearance to supply sufficient ethanol for the programme. The Tamil Nadu Government authorities have held a discussion with the sugar mills and the oil marketing companies in this regard.

To supply five-per cent ethanol blended petrol across the State, the oil companies would need over 5 crore litres ethanol a year, according to sources.