ETHANOL COVERAGE DEADLINE EXTENDED TO SEPTEMBER 2003
Shri Ram Naik, Minister
of Petroleum & Natural Gas today in a Press Conference announced
that the milestone for complete coverage of the programme of blending
5% of ethanol in petrol in notified 9 States and 4 Union Territories,
which had commenced from 1st January 2003 and was to
be completed by 30th June 2003, stood extended by a
further period of three months to 30th September 2003
in view of the on-going expansion of manufacturing capacities
in various target States.
Shri Ram Naik, while
reiterating Government of India's resolve to ensure full coverage
by 2004, said that the extension was necessitated by the relative
slowness with which the production infrastructure for anhydrous
ethanol was being established in some States and Union Territories.
It has resulted in inadequate ethanol supplies. These States have
now issued licenses and expansion was underway in Andhra Pradesh,
Karnataka, Tamil Nadu, and Uttar Pradesh.
Shri Naik also expressed
concern at the heavy dosage of State levies on ethanol and on
the blended petrol. The States and UTs were being requested to
review these in the larger interests of the economy. He called
for simplification of excise procedures and removal of both fiscal
and physical barriers to unrestricted inter-state movement of
the product.
Tracing the progress
of implementation of the programme to date, Shri Naik informed
that the States of Uttar Pradesh and Maharashtra and the UTs of
Chandigarh and Dadra & Nagar Haveli have achieved full coverage
so far. Partial coverage has been achieved in the States of Karnataka,
Gujarat, Punjab, Andhra Pradesh and Haryana. Goa and the UT of
Daman & Diu would be fully covered shortly. Tamil Nadu and
Pondicherry U.T. are still finalizing their infrastructure development
plans and are also gearing up for implementation.
A total 255 districts
in the notified 9 States and 4 UTs were to be supplied with ethanol
blended petrol. Of these, 157 districts have been covered so far
including 13 districts in part. All the 71 districts of Uttar
Pradesh and the 35 districts of Maharashtra now supply only the
blended fuel. In Karnataka, 20 districts have been covered including
7 districts in part out of the total of 27. In Gujarat, in 16
districts out of 25 including 3 in part and in Punjab, in 7 out
of 17 districts, ethanol blended petrol supplies are being made.
Andhra Pradesh and Haryana have the least coverage at present,
at about 10%. In Goa and Tamil Nadu, the coverage is nil as on
date.
Shri Naik said that
for the programme to be successful, the States and UTs have to
encourage increased production of anhydrous ethanol, adopt uniform
sales tax of 4%, abolish all export and import fees so as to have
free inter-State movement of the product and simplify excise procedures.
Shri Naik also informed
that he has convened a meeting of the Chief Ministers and the
Administrators of the 9 States and 4 Union Territories on 11th
July, to see how best to proceed in removing the hurdles hampering
the smooth implementation of the programme. Use of ethanol will
improve the environment, aid the farming community, the ailing
sugar industry and thus recharge the economy. He also said that
the meeting would consider steps required to extend the programme
in the remaining States and UTs.
